E I C Report on Aviation Industry

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A

Project Report On

EIC Analysis
Of
Petroleum Industry

Prepared By:

Pruthvi Machhar (A-28)
Richa Mokashi (A-32)
Reshma Bharwani (B-5)
Sarita Dube (B-10)
Vikas Patel (B-39)

Submitted To:
Prof. Mayur Shah

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A. Economy Review:

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% since 1997. Gross Domestic Product (GDP) in India expanded at an annual rate of 8.90 percent in the third quarter of 2010. From 2004 until 2010, India's average quarterly GDP Growth was 8.37 percent reaching an historical high of 10.10 percent in September of 2006 and a record low of 5.50 percent in December of 2004.

India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with less than one-third of its labor force. India has capitalized on its large numbers of well-educated people, skilled in the English language, to become a major exporter of software services and software workers. An industrial slowdown early in 2008, followed by the global financial crisis, contributed to the deceleration in annual GDP growth to 6.1% in 2009. However, India escaped the brunt of the global financial crisis because of cautious banking policies and a relatively low dependence on exports for growth. Domestic demand, driven by purchases of consumer durables and automobiles, has re-emerged as a key driver of the economy, as exports have fallen since the global crisis started. India's fiscal deficit increased substantially in 2008 due to fuel and fertilizer subsidies, a debt waiver program for farmers, a job guarantee program for rural workers, and stimulus expenditures. The government abandoned its deficit target and allowed the deficit to reach 6.8% of GDP in FY09. The government has expressed a commitment to fiscal stimulus in 2010, and to deficit reduction the following two years. It has proposed limited privatization of government-owned industries, in part to offset the deficit. India's long term challenges include inadequate physical and social infrastructure, limited employment opportunities, and insufficient basic and higher education opportunities. In the long run, however, the huge and growing population is the fundamental social, economic, and environmental problem.

Economic Indicators

An economic indicator is simply any economic statistic, such as the unemployment rate, GDP, or the inflation rate, which indicate how well the economy is doing and how well the economy is going to do in the future.

If a set of economic indicators suggest that the economy is going to do better or worse in the future than they had previously expected, they may decide to change their investing strategy.

Following are some of the important economic indicators which affect the whole economy.

1.India GDP Growth Rate

The Gross Domestic Product (GDP) in India expanded at an annual rate of 8.90 percent in the third quarter of 2010. From 2004 until 2010, India's average quarterly GDP Growth was 8.37 percent reaching an historical high of 10.10 percent in September of 2006 and a record low of 5.50 percent in December of 2004. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labor force. The economy has posted an average growth rate of more than 7% in the decade since 1997,...
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