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Indian Economy

Indian Economy

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Published by haramol
Article discribes about indian economy, it gives its overview, what conditions exist in India, whats the living conditions of people in india, emergence of india as economy
Article discribes about indian economy, it gives its overview, what conditions exist in India, whats the living conditions of people in india, emergence of india as economy

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Published by: haramol on Aug 30, 2009
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Indian Economy OverviewFor More Articles go tohttp://www.competitionquest.com/articles.phpIndian economy has been witnessing a phenomenal growthsince the last decade. After seeing a growth rate in excess of 9per cent for the last 3 years, it is still holding its ground in themidst of the current global financial crisis.Pegging India's growth rate in the current year at between 7and 8 per cent, the Union Finance Minister, Mr P Chidambaram,has reiterated that India would continue being the secondfastest growing economy in the world despite the ongoingglobal economic slowdown. Though the global financial crisishave affected the Indian equity and foreign exchange markets,the macroeconomic brunt of the meltdown is not much due tothe overall strength of the domestic demand and the largelydomestic nature of its investment financing.Chidambaram has further assured that by the second half of the next fiscal, the economy would pick up and thegovernment’s ‘stimulus measures’ would encourage growthand ensure "brisk” economic activities in the last few months of this fiscal year.Bob Buckle, an APEC Rim trade (based on rich nations)economist has stated that with India and China posting goodgrowth rates, the world may come out of recession more easily.Further, according to the International Monetary Fund’s (IMF)prediction in October 2008, India is likely to grow at 7.8 percent in 2008, and 6.3 per cent in 2009.As a measure to boost the economy and to ensure a 7 per centgrowth, the government announced an approximately US$ 6.46billion fiscal stimulus package, on December 7, 2008. Thepackage entailed additional spending and excise duty cuts forincreasing consumption.According to stock market regulator Security and ExchangeBoard of India (SEBI), the Indian stocks would be the first tobounce back in the current global financial crisis. SEBI is likelyto initiate steps to limit over-leveraged hedge funds with theaim of bringing in more solidity to the unstable market.
Leading global agencies have reiterated faith in the Indianeconomy. According to Crisil, a leading rating agency, India'sretail securitisation market is betterplaced than the US, exhibiting more stability with few ratingdowngrades. "Investors in securitised paper in India have noreason to fear crippling losses of the kind that have hit their UScounterparts," a Crisil release said.Further, as per a survey in Deutsch business magazine,Wirtschafts Woche, in spite of the global financial crisis,companies from developed economies such as Germany haveshown confidence in India's economic future and are interestedin growing their business in the country. Showing faith in India'srobust future, around 94 per cent German companies plan toincrease their businesses with the subcontinent, the surveystated.After the signing of the US-India civil nuclear deal, India willnow be partnering several countries for nuclear fuel technologyprojects, and this will further boost the economy.India and Russia signed 10 agreements in December 2008,including a pact on civil nuclear cooperation. Thorium Power, a US firm, and Punj Lloyd will be forming anuclear fuel technology joint venture (JV). The JV will offerthorium fuel technology for light water reactors (LWR) in India.
The 2008-09 Fiscal
Subsequent to three years of plus 9 per cent growth in grossdomestic product (GDP), India's growth rate in the current yearis likely to come down to a more modest level of 7–8 per cent.
Foreign institutional investments (FII) in India becamepositive in November 2008, after net selling by them inSeptember and October 2008 due to redemptionpressures from abroad.As per SEBI data, foreign institutional investors (FIIs) continuedto flow into India with 120 new FIIs registering themselves
during September and November 2008, since the globalmeltdown started in September. Even though some FIIs hadpulled out, many FIIs see long-term value in India. Moreover,during the same period, 358 new sub-accounts were registered,which was the highest within three months, in 2008.
Foreign direct investment (FDI) in India from March-September 2008 increased by 137 per cent to US$ 17.21billion, due to the inflows into construction, real estate,services, computer hardware and software firms. Thegovernment has also stated that the country would attractUS$ 35 billion of FDI in the current year to March 2009.
In August 2008, the average inflation stood near 12.5 percent, which fell sharply in the third week of December, at6.84 per cent, which was the lowest in the last 9 months.It was lower than Reserve Bank of India’s (RBI’s) target of 7 per cent for 2008–09.
In the first half of the current fiscal, the money supplyincreased by 6.6 per cent against 8.2 per cent last year(from end of March 2008 end to end of September 2008).
Net bank credit to the government and commercial sectorincreased by 6.8 per cent and 7.8 per cent, respectively.
Growth in net foreign exchange assets of the banks slowedto 6.0 per cent compare to 11.0 per cent in the previousyear. However, the non-monetary liabilities went.
 The central bank pumped in more money into the bankingsystem, cutting CRR levels from 9.00 per cent to 5.5 percent. Repo rate was also brought down to 7.5 per centfrom 9 per cent.
 The growth in the gross tax collection is was 25 per centtill September 2008, against 24.5 per cent in September2007.
 Total foreign investment inflow during the first half of 2008-09 was US$ 13.8 billion in September 2008.
India’s forex totalled to US$ 251.3 billion in the first weekof November 2008.India’s cumulative value of exports for the period betweenApril-September, 2008 was US$ 94973 million compared to US$72556 million. Exports during September, 2008 added up to

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