India - Economic Analysis
Republic of India
GLOBAL MACROECONOMICS
Report By: Hina Sharma
Executive Summary
In this report I will discuss the current state of Economy of the Republic of India, the current economic challenges and recommended policy reforms. Key Findings: GDP Growth Of India Is Following A Downward Trend Since Q3 Of 2010-11 The Inflation Rate Is Persistent Investment Confidence Of Businesses Is Falling High Fiscal And Budget Deficit Are A Growing Concern High Corruption Is Affecting The Growth Of GDP 74% Education Rate Is Much Below Worldwide Average Consistent Increase In Trade Deficit The Recently Exposed Corruption Scandals Amount To 5715.91 INR Billions
Future Prospects: Enormous Scope Of Infrastructure Development India Is A Highly Favoured Investment Destination Large Working Age Population
Current State of the Economy
Indian GDP grew 5.5% in Q1 of 2012-13 looked positive compared 5.3% in Q4 of 2011-12. However, the average of 5.4% in first 2 quarters of 2012-13 is an all-time low since 2008 and the projected 7.6% (+/- 0.25 per cent) during the 2012-13 annual budget. This growth rate is even lower than the Global crisis affected growth of 6.7% of 2008-09. RBI has revised the GDP forecast for 2012-13 to 5.7% from 6.5% previously. The economic activities which recorded significant growth in Q1 (at constant prices) are Construction at 10.9%, Financing, Insurance, Real Estate and Business Services at 10.9%, and Community, Social and Personal services at 7.9%. The economic activities which recorded lower growth rates (estimated at constant prices) in 201213 compared to Q1 of 2011-12 are: Agriculture, Forestry & Fishing at 2.9%, Mining & Quarrying at 0.1%, Manufacturing at 0.2%, Electricity, Gas and Water Supply at 6.3%, and Trade, Hotels, Transport and Communication at 4%. Consumer Spending: The consumer confidence improved in the first quarter of 2012-13 to 82.1% compared to 62.8 % and 81.2% during 2011-12. Although the consumer
GLOBAL MACROECONOMICS
Report By: Hina Sharma
Executive Summary
In this report I will discuss the current state of Economy of the Republic of India, the current economic challenges and recommended policy reforms. Key Findings: GDP Growth Of India Is Following A Downward Trend Since Q3 Of 2010-11 The Inflation Rate Is Persistent Investment Confidence Of Businesses Is Falling High Fiscal And Budget Deficit Are A Growing Concern High Corruption Is Affecting The Growth Of GDP 74% Education Rate Is Much Below Worldwide Average Consistent Increase In Trade Deficit The Recently Exposed Corruption Scandals Amount To 5715.91 INR Billions
Future Prospects: Enormous Scope Of Infrastructure Development India Is A Highly Favoured Investment Destination Large Working Age Population
Current State of the Economy
Indian GDP grew 5.5% in Q1 of 2012-13 looked positive compared 5.3% in Q4 of 2011-12. However, the average of 5.4% in first 2 quarters of 2012-13 is an all-time low since 2008 and the projected 7.6% (+/- 0.25 per cent) during the 2012-13 annual budget. This growth rate is even lower than the Global crisis affected growth of 6.7% of 2008-09. RBI has revised the GDP forecast for 2012-13 to 5.7% from 6.5% previously. The economic activities which recorded significant growth in Q1 (at constant prices) are Construction at 10.9%, Financing, Insurance, Real Estate and Business Services at 10.9%, and Community, Social and Personal services at 7.9%. The economic activities which recorded lower growth rates (estimated at constant prices) in 201213 compared to Q1 of 2011-12 are: Agriculture, Forestry & Fishing at 2.9%, Mining & Quarrying at 0.1%, Manufacturing at 0.2%, Electricity, Gas and Water Supply at 6.3%, and Trade, Hotels, Transport and Communication at 4%. Consumer Spending: The consumer confidence improved in the first quarter of 2012-13 to 82.1% compared to 62.8 % and 81.2% during 2011-12. Although the consumer
References: Fiscal Deficit - http://www.business-standard.com/india/news/chidambaram-has-inheritedhugefiscal-mess-ajay-chhibber/492407/ CPI Inflation - http://mospi.nic.in/Mospi_New/upload/t4.pdf?status=1&menu_id=122 WPI Inflation - http://eaindustry.nic.in/cmonthly.pdf Literacy rate - http://www.thehindu.com/news/national/article1587153.ece?homepage=true Corruption in India - http://en.wikipedia.org/wiki/List_of_scandals_in_India http://www.tradingeconomics.com/india/indicators http://business.gov.in/indian_economy/index.php https://www.cia.gov/library/publications/the-world-factbook/geos/in.html