India Economy

Development

India’s Economic development has brought tremendous success for the country with a better global image. 8 percent growth rate of India’s national income for consecutive three years is a true indication of its growth story.

The infrastructure related problems as a threat to country’s economic development is being solved to some extent through public, private, domestic and foreign investments.

Development Indicators:

The productivity scenario of India’s economy is experiencing a faster rate of growth today. Some of the development indicators of the India’s economy are as follows:

• Both the savings and investment rates in the country is experiencing a faster rate of growth recently. As to the current statistics, India’s saving rate is 32 percent of the total Gross Domestic Product and investment is of 34 percent. Both the indicators are expected to rise very fast in the coming years.
• The age profile in India among the global population over the world is considered to be a better dividend for the country’s economy. Young population group of India’s economy has significantly added to the country’s growth.
• The Government of India in the same direction has undertaken many steps to train and educate its masses for getting employment.

Policy measures undertaken in India recently have helped a lot in the economic progress. Economic growth has created huge employment opportunities on the one hand and reduced poverty on the other. With manifold objectives in mind, the Government has come forward with high investments on social sector development particularly on health, education and infrastructure related developments.

Statistics

India’s Economy has experienced a robust growth in the second quarter of the year 2006-07. The Gross Domestic Product in the country increased at an impressive rate of 9.2 percent per Annam. The GDP Growth was mainly led by the fast rising industrial production as well as the growth in the services sector.

The Real growth rate of Gross Domestic Product of India over various quarters for the year.

2006-07 is as follows:

For the second quarter of the year 2006-07, the agriculture and allied activities grew at a rate of 1.7 Percent, industries grew by 10.5 Percent, and the services sector grew by 10.7 Percent. The infrastructure industry in the market economy like India grew at a rate of 7.8 percent during the period of April-Nov 2006. The services sector was led by the sub-sectors such as hotels, restaurants, transport, storage and communications.

Fiscal Situation In India:

The Fiscal Responsibility and Budget Management Act in India has resulted a declining deficits both in the center and state levels. Some deficit indicators are expected to decline by 0.7-09 Percent of GDP for the year 2006-07. The Fiscal deficit in India has declined in the recent times.
The Tax Collections of the Government has increased, particularly the taxes such as Income Tax, Corporation Tax and the Service Tax. Tax collections from the new taxes such as Fringe Benefit Tax and Cash Transaction Tax have also increased. On the other hand the Non-Plan Expenditure of the Government has increased.

Inflation In India:

Global Inflation level is regarded as a major Challenge in the process of economic development. In India Particularly the prices of foods and manufacturing products in the second quarter increased at a faster rate. Both the Monetary policies as well as the Fiscal policies have helped a lot in checking the rate of inflation in the country.

India in the International Scenario:

India’s international participation has increased at a faster rate recently. The merchandise exports of the country have experienced a strong growth. Growth in the exports of services remained buoyant. Foreign Exchange Reserves in the country also increased at a faster rate in the country. USA, UAE and OPEC countries remained as the top destinations for the exports.

Conclusion:

Participation of the India’s Economy with the world economy has created enough opportunities for India to grow. Starting from Doing Business Report to the International Rankings, the Indian Economy has become able enough for getting good rankings.

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Say Cheese!!!

Economics is not renowned for being a bundle of laughs. However there are quite a lot of good Economics Jokes.

TOP 8 REASONS TO STUDY ECONOMICS

1. You can talk about money without every having to make any.

2. Mick Jagger and Arnold Schwarzenegger both studied economics and look how they turned out.

3. When you are in the unemployment line, at least you will know why you are there.

4. If you rearrange the letters in "ECONOMICS", you get "COMIC NOSE".

5. Although ethics teaches that virtue is its own reward, in economics we get taught that reward is its own virtue.

6. When you get drunk, you can tell everyone that you are just researching the law of diminishing marginal utility.

7. You can't be wrong; only subject to an unexpected asymmetric shock.

8. An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today.

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