Indian economy to grow at 9%

Chairman of the Economic Advisory Council to the Prime Minister, C Rangarajan said he expects inflation to come down to 6.5% by December end and even touch 5.5% - 6% by March end. Inflation has been a major cause of concern for the Indian government with the food price index touching uneasy double digits.

Reserve Bank of India (RBI) had taken some initiatives to ease liquidity.the RBI action coupled with increased government expenditure in the last quarter of the fiscal year would contribute to adequate liquidity.Rangarajan expects the economy to grow at 9%. He added that the Indian economy has moved on to a higher growth trajectory. “During the five year period beginning 2005-06 the Indian economy has grown at the rate of 8.5% per annum. This includes the crisis of 2008-2009."

In the current year the economy will grow between 8.5-9%. So the growth rate for manufacturing and the services sector will be in excess of 9%. There is no doubt that the Indian economy has moved on to higher growth trajectory. The expectation is that the Indian economy will continue to grow at 9% per annum for the next decade or beyond,

Indian Economy overview

It’s almost a decade since we entered into the 2000s. Indian Economic growth in these years wasn’t so impressive for the western economies. It proves to be one of the worst economic period for those economies. Indeed, the so-called fastest growing economies (such as India, Brazil, China, Mexico, Russia, and Indonesia) have seen an unprecedented economic expansion because, the eastern economies were the producers and the western economies were the consumer and the same trend would likely to continue as the companies, nowadays, are more conscious about the cost.
As the economic pace is picking up, global commodity prices have staged a comeback from lows and global trade has also seen a decent growth over the last two years. Unprecedented Government intervention and exceptionally large interest rate cuts by the central bank in advanced and emerging economies have contributed a lot to pull the global economy up from the deepest recession since the World War II. Several Governments around the world launched the stimulus packages to prop up the economic growth, generate employment opportunities and the overall economic growth with the aim to reduce uncertainty in the Indian economy and increased confidence. In this VMW research, we’ll discuss about the overall economic prospect for the year 2010 and the how the Indian Economy emerge from the ongoing economic repairment.
Economic Prospect For Year 2010 -

India’s Economic Outlook Projection

2007 2008 2009 2010

GDP Growth 9.40% 7.30% 7.60% 8.30%
CPI 6.40% 9.30% 5.50% 4.90%