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abhikar234

abhikar234

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Published by Abhishek Kumar

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Published by: Abhishek Kumar on Feb 19, 2012
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02/19/2012

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 Economic Analysis
According to the estimates by the Ministry of Statistics and Programme Implementation, theIndian economy has registered a growth of 7.4 per cent in 2009-10, with 8.6 per cent year-on-year (y-o-y) growth in its fourth quarter. The growth is driven by robust performance of themanufacturing sector on the back of government and consumer spending. GDP growth rate of 7.4 per cent in 2009-10 has exceeded the government forecast of 7.2 per cent for the full year.According to government data, the manufacturing sector witnessed a growth of 16.3 per centin January-March 2010, from a year earlier.Economic activities which showed significant growth rates in 2009-10 over thecorresponding period last year were mining and quarrying (10.6 per cent), manufacturing(10.8 per cent), electricity, gas and water supply (6.5 per cent), construction (6.5 per cent),trade, hotels, transport and communications (9.3 per cent), financing, insurance, real estateand business services (9.7 per cent), community, social and personal services (5.6 per cent).The Gross National Income is estimated to rise by 7.3 per cent in 2009-10 as compared to 6.8 per cent in 2008-09. The per capita income is estimated to grow at 5.6 per cent in 2009-10.
The Economic scenario
 
The number of registered foreign institutional investors (FIIs) was 1710 as on May 31, 2010and the total FII inflow in equity during January to May 2010 was US$ 4606.50 million whileit was US$ 5931.80 million in debt. Net investment made by FIIs in equity between June 1, 2010 and June 14, 2010 was US$530.05 million while it was US$ 875.73 million in debt.As on June 4, 2010, India's foreign exchange reserves totalled US$ 271.09 billion, anincrease of US$ 9.88 billion over the same period last year, according to the Reserve Bank of India's (RBI) Weekly Statistical Supplement.Moreover, India received foreign direct investment (FDI) worth US$ 25,888 million duringApril-March, 2009-10, taking the cumulative amount of FDI inflows during August 1991 -March 2010 to US$ 1, 32,428 million, according to the Department of Industrial Policy andPromotion (DIPP).
rowth potential story
 
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The data centre services market in the country is forecast to grow at a compoundannual growth rate (CAGR) of 22.7 per cent between 2009 and 2011, to touch close toUS$ 2.2 billion by the end of 2011, according to research firm IDC India¶s report published in March 2010. The report further stated that the overall India data centreservices market in 2009 was estimated at US$ 1.39 billion.
 
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According to a report by research and advisory firm Gartner published in March 2010,the domestic BPO market is expected to grow at 25 per cent in 2010 to touch US$ 1.2 billion by 2011. Further, the BPO market in India is estimated to grow 19 per centthrough 2013 and grow to US$ 1.8 billion by 2013. According to the report, thedomestic India BPO services market grew by 7.3 per cent year-on-year in 2009.
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The BMI India Retail Report Quarter 3, 2010 released in May 2010, forecasts thattotal retail sales will grow from US$ 353.0 billion in 2010 to US$ 543.2 billion by2014.
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According to a report titled 'India 2020: Seeing, Beyond', published by domestic broking major, Edelweiss Capital in March 2010, stated that India's GDP is set toquadruple over the next ten years and the country is likely to become an over US$ 4trillion economy by 2020.
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India will overtake China to become the world's fastest growing economy by 2018,according to the Economist Intelligence Unit (EIU), the research arm of London- based Economist magazine.
 I 
nflation
India has been the cynosure for the past few years in the global economic arena owing to itschanging inflation patterns. Between the fiscal year 2004-05 and 2007-2008, India hadexperienced an average growth rate of more than 9%, but the global crunch pinched theeconomy so hard that the economy gave in to the adverse external shocks and few sectorsexperienced a slump. Inflation in India 2009 stands at 11.49% Y-o-Y. The inflation rate isreferred to the general rise in prices, taking into consideration the common man's purchasing power. Inflation is mostly measured in CPI.In 2008 industry bodies, policy makers were all worried with the steadily-mounting inflation.The middle of the year augmented the tension as the majority of the population was wary of adouble-digit inflation but things changed within few months. Inflation in India actually fell below 1% during the third week of March, 2009. The moderate inflation is the desirable of alltoo much of it or too less of it, in every way worries the policy makers.Understanding in the right manner inflation is such a situation when too many people chasetoo few goods and too few services, which automatically makes the prices of the goods andservices high because of the high demand. At the same time, when inflation falls below thedesired mark (in the negative territory), then too few people chase too many goods and toomany services, making the prices of the goods and services under-priced.The India inflation is actually measured by the Y-o-Y variation in the Wholesale Price Index.While the inflation as measured by WPI is at present at a very low level, the inflationmeasured by the Consumer Price Index is at elevated levels of 9 to 10%
 
 I 
nflation in
 I 
ndia Statistics (%)
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2009 10.45 9.63 8.03 8.70 8.63 9.29 11.89 11.72 11.64 11.49 - -2008 5.51 5.47 7.87 7.81 7.75 7.69 8.33 9.02 9.77 10.45 10.45 9.702007 6.72 7.56 6.72 6.67 6.61 5.69 6.45 7.26 6.40 5.51 5.51 5.512006 4.39 5.31 5.31 5.26 6.14 7.89 6.90 5.98 6.84 7.63 6.72 6.72
 I 
ndustry Analysis
The Indian telecommunications industry is one of the fastest growing in the world. Accordingto the Telecom Regulatory Authority of India (TRAI), the number of telephone subscriber  base in the country reached 653.92 million as on May 31, 2010, an increase of 2.49 per centfrom 638.05 million in April 2010. With this the overall tele-density (telephones per 100 people) has touched 55.38. The wireless subscriber base has increased to 617.53 million atthe end of May 2010 from 601.22 million in April 2010, registering a growth of 2.71 per cent. Although the growth of telecom industry is stabilizing but with 3G operations andexpansions undertaken by Bharti Airtel it is expected to grow at a higher rate in future.Currently Telecom industry is growing at a CAGR of 12.5 %.Major Players in the Sector 
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Bharti Airtel
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V
odafone
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Idea
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Reliance Communications
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Tata Communications

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