OUTLOOK OF INDIAN ECONOMY

Presented byBasu Deo Joisy Nilam Pokhrel VL Malsawmtluanga

201002 201033 201019

OVERVIEW
Total GDP of $1.7 trillion. 10th largest by nominal GDP. 4th largest by Purchasing Power Parity. Per Capita income is $ 1219. Economic Reform in 1991, Free Market Principle introduced. Foreign reserve of $319 billion (July 2011).

ANNUAL FORECAST FOR 2011-2012

GDP growth 7.9 percent(Present 7.7%) Agriculture & allied activities growth 3.8 percent Industry growth 7.3 percent Services growth 9.4 percent Fiscal Deficit 5.1 percent of GDP WPI Inflation rate (end March 2012) 6.6 percent(Aug,2010.05%) IIP growth 7.3 percent(July, 2011-3.3%) Trade Balance (-) 7.5 percent of GDP Current Account Balance (-) 2.7 percent of GDP USD/INR exchange rate (end March 2012) Rs. 44/USD

INTEREST RATES
CRR 6% Repo Rate 8% Reverse Repo Rate 7% SLR 24% Bank Rate 6%

2010 GDP $1.5 trillion GDP growth rate10.4 Service contribution57 BoT-(-)$108160.6 mn

2009 2008 GDP $ 1.2 trillion GDP growth rate4.9 Service contribution54.2 BoT-(-) $88535.0 mn GDP $ 1.3 trillion GDP growth rate7.4 Service contribution55 BoT- (-)$118401.3mn

COMPONENTS OF INDIAN ECONOMY (2009-2010)

Manufacturing 28%
Service 57% Agriculture 15%

STRENGTH
One of the fastest growing economy of the world. Readily availability of work force. Availability of natural resources for setting up of Industries.

WEAKNESS
High unemployment rate i.e. 9.4%(2009-2010) Multi party rule. Bureaucracy and corruption. Lack of adequate infrastructure. Brain drain. Increasing gap between rich and poor.

OPPORTUNITIES
Consumer base of 1.2 billion people. Youngest population of the world. Increasing income especially middle class which accounts to 50 million. Strong knowledge base.

THREATs
High population growth. Inflation i.e. 9.4%(as on Sept,2011). 60% of population is dependant on agriculture but low contribution to GDP.(provides 52% of employment).