Monday, May 31, 2010

Indian Economy Witnessed Impressive Growth both in Quarter and Fiscal Year

Indian economy witnessed significant growth both in January-March quarter of 2010 and April 1 2009 to March 31 2010 Fiscal year (fiscal year in India is counted from 1 April).
For the January-March 2010, the growth was 8.6% which was much better than the previous quarter’s 6.5%. On the other hand, in the fiscal year ending on 31 March 2010, the economy grew 7.4% which was better than expected. It seems that India is out of the worst impact of global economic recession.
Consumer demand in the domestic market helped and this has been reflected in the stock exchange in the last one year. However, not everything looks very rosy for the country.
Millions of farmers are now waiting eagerly for the monsoon rain that has already started in some parts of the country. Normal monsoon rain will contribute in a good harvest which is very important for the GDP growth.  
Decision makers at large Indian companies are now perhaps more worried about the global scenario than the monsoon rain. Right now, things do not look very bright for some of the Euro zone countries including Greece. Large Indian companies have strong ties with these countries. So, any negative situation in Europe will hurt Indian companies.
Indian government is also worried about inflation rates. It has to look after a population of over 1 billion. The price of food items is a sensitive issue for any government in India.  
Earlier this year, India’s giant neighbor China also saw its economy coming out of the negative impact of global economic recession. 

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