Skip to main content

Can India's Economy Recover?

MUMBAI, IndiaIndia’s economy is showing signs of a gradual recovery as gross domestic product increased at an annual rate of 4.8 percent in the three months that ended in September.
The growth surpassed the expectations of analysts, who projected a 4.6 percent rate, and was faster than the 4.4 percent pace seen in the previous quarter, which was the slowest growth in four years.
“The Indian economy has bottomed out on growth, and I think we are definitely seeing signs of a mild, moderate recovery — not just the gross domestic product numbers but in the results of individual companies,” said Saugata Bhattacharya, chief economist at Axis Bank. “However, in order to resuscitate growth, the government must improve investment channels, take measures towards fiscal consolidation, decontrol diesel prices and simplify the tax structure.”
The pickup in the September quarter was driven primarily by a good monsoon, which helped the agriculture sector expand at a 4.6 percent annual rate, according to the government figures released Friday. The sector that includes finance, insurance, real estate and business services also performed well, increasing by 10 percent; the sector for electricity, gas and water, increased 7.7 percent; and construction, 4.3 percent.

Comments

  1. India's economic growth rate picked up strongly in the most recent quarter, according to official figures.

    The economy expanded at an annual rate of 4.8% in the July-to-September period, up from 4.4% in the previous quarter.

    The acceleration was faster than analysts had been expecting.

    Asia's third-largest economy has been weighed down by various factors, such as high inflation, a weak currency and a drop in foreign investment.

    This is the fourth quarter in a row that India's annual growth rate has been below the 5% mark, and the previous quarter's rate of 4.4% was the lowest for four years.

    Earlier this year, the Indian prime minister's economic advisory council lowered the growth outlook for the current financial year.

    It now expects the economy to expand by 5.3% this year, down from its earlier projection of 6.4%.

    Growth hurdles
    India's economy has been hurt by a range of factors in recent months, including a slowdown in key sectors such as mining and manufacturing.

    Slowing growth, coupled with a recovery in developed markets, such as the US, has made India a less attractive option for foreign investors.

    Continue reading the main story
    US Dollar v Indian Rupee
    LAST UPDATED AT 06 DEC 2013, 19:30 GMT
    USD:INR three month chart
    $1 buys change %
    61.4550 -
    -0.31
    -
    -0.50
    Speculation that the US may scale back its key economic stimulus measure has seen investors pull money out of emerging markets, such as India.

    This has affected India's currency, which dipped nearly 25% against the US dollar between January and September this year.

    Though the rupee has recovered a little since then, it is still down about 13% against the dollar since the start of this year.

    That has made imports more expensive and contributed to a high rate of consumer inflation, which was 10.1% October, up from 9.84% in September.

    High food and fuel prices have contributed to inflation becoming "entrenched", finance minister P Chidambaram said.

    As a result, the central bank has had to raise the cost of borrowing in a bid to curb inflation.

    The latest interest rate rise in October saw the key rate increase to 7.75%.

    Some observers argue that high interest rates are hurting businesses and households, and having a negative impact on the economy.

    "A combination of weak investment, high inflation and tight monetary policy would not let India's economic recovery gather steam any time soon," Miguel Chanco, Asia economist at Capital Economics, told the BBC.

    ReplyDelete

Post a Comment

Thanks for leaving comments. You are making this discussion richer and more beneficial to everyone. Do not hold back.

Popular posts from this blog

Siege - A Poem By Ahmad Faraz Against The Dictatorship Of Zia Ul Haq

Related Posts: 1.  Did Muhammad Ali Jinnah Want Pakistan To Be A Theocracy Or A Secular State? 2. The Relationship Between Khadim & Makhdoom In Pakistan 3. Battle for God; Battleground Pakistan - a time has finally come to call a spade a spade 4. Pakistan - Facing Contradictory Strategic Choices In An Uncertain Region 5. Pakistan, Islamic Terror & General Zia-Ul-Haq 6. Why Pakistan Army Must Allow The Democracy To Flourish In Pakistan & Why Pakistanis Must Give Democracy A Chance? 7. A new social contract in Pakistan between the Pakistani Federation and its components 8. Birth of Bangladesh / Secession of East Pakistan & The Sins of Our Fathers 9. Pakistan Army Must Not Intervene In The Current Crisis - Who To Blame For the Present Crisis in Pakistan ? 10. Balochistan - Troubles Of A Demographic Nature

India: The Terrorists Within

A day after major Indian cities were placed on high alert following blasts in the IT city of Bangalore, as many as 17 blasts ripped through Ahmedabad, capital of the affluent western Indian state of Gujarat . Some 30 people were killed, some at hospitals where bombs were timed to go off when the injured from other blasts were being brought in. (Later, in Surat, a center for the world's diamond industry, a bomb was defused near a hospital and two cars packed with explosives were found in in the city's outskirts.) Investigators pointed fingers at the usual Islamist suspects: Pakistan-based Lashkar-e-Toiba (LeT), Bangladesh- based Harkat-ul Jihadi Islami (HUJI) and the indigenous Students' Islamic Movement of India (SIMI). But even as the police searched for clues, the Ahmedabad attacks were owned up by a group calling itself the " Indian Mujahideen. " Several TV news stations received an email five minutes before the first blasts in Ahmedabad. The message repo

Mir Chakar Khan Rind - A Warrior Hero Of Baluchistan & Punjab Provinces of Pakistan

By Sikander Hayat The areas comprising the state of Pakistan have a rich history and are steeped in the traditions of martial kind. Tribes which are the foundation stone of Pakistan come from all ethnic groups of Pakistan either they be Sindhi, Balochi, Pathan or Punjabi. One of these men of war & honour were Mir Chakar Khan Rind. He is probably the most famous leader coming out of Baloch ethnic group of Pakistan. Mir Chakar Khan Rind or Chakar-i-Azam (1468 – 1565 ) was a Baloch king and ruler of Satghara in (Southern Pakistani Punjab) in the 15th century. He is considered a folk hero of the Baloch people and an important figure in the Baloch epic Hani and Sheh Mureed. Mir Chakar lived in Sibi in the hills of Balochistan and became the head of Rind tribe at the age of 18 after the death of his father Mir Shahak Khan. Mir Chakar's kingdom was short lived because of a civil war between the Lashari and Rind tribes of Balochistan. Mir Chakar and Mir Gwaharam Khan Lashari, hea