Monday, March 12, 2007

Overview of Indian Economy

Economic Growth in India has increase to a record 9.2% Many economists see this as a sign India at last will be able to fulfill her potential to alleviate poverty and become a modern successful economy.

See: Reasons to be optimistic about state of the Indian Economy

However despite the high growth rates the Indian economy still faces many potential problems. In the short term inflation could become a significant problem as the economy gets close to full capacity. Unlike China the Indian economy has serious supply side constraints in certain areas like lack of investment. This means that the capacity to grow at 9% may be not possible to sustain in the long term.

See: Problems facing Indian Economy

Also see State of Indian Economy 2007

Indian Market Economic Overview

  • GDP Growth 2001- 05 6.8%
  • Current GDP growth 9.2%
  • Inflation 2001-05 4.0%
  • Current Inflation 6.2%

Indian Population 1.08bn Population growth 1.5%

Picture of Taj Mahal: Unmesh Swanson Sri Chinmoy Centre Galleries

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