Indian Economy

India is the largest and vibrant democracy in the world and political stability has been on high priority for the Government of India.

India began with economic reforms since 1991 and Post Liberalization, India has undergone a paradigm shift, frenetic growth upsurge and impact of rising India to new heights is flagrant.

The transition of Indian economy is that it has become the second fastest growing economy in the world with GDP growth rate of 7 to 9% since 2005 and Indian Federal Government has opted for not only faster but also more inclusive growth.

This has placed India in the trillion dollar GDP club and is also considered as fourth largest in terms of purchasing power parity and in spite of global slowdown and strong challenges in the domestic economy there is enough momentum and fundamental macro economic strength in the Indian economy to ensure about 7 to 9% GDP growth during the next five year plan.

The Bric report India’s path to 2030 perdicts that from all emerging markets India will become the third economic power in the world behind USA and China latest by the year 2030.

India and China will continue to contribute substantial quantum to the world's economic growth while United States will face obscure headwinds and Eurozone will likely slip into recession and the developed economies must avoid dire financial contagious epidemic reverberation.

The next five year plan (2012-17) is going to maintain its target growth rate between 7 to 9% despite recent turmoil and apprehensions of a downturn in western economies according to the planning commission of India chaired by Prime Minister Manmohan Singh and the aim is to attain double digit growth in coming years.

The Indian economy is resilience and acceleration of growth is aspiring depending on the future monetary policy and fiscal consolidation announced in the Union budget for 2010-2011.

India is making giant strides and is on the right trail to achieve the Indian Millennium development goals and can be beacon of globalisation in current economic malaise.

India's foreign direct investment continues to gather momentum with the inflows registering a 310% increase in June 2011 to $5,65 billion. This is the highest monthly inflow in the past 11 years and total FDI stood at US$ 22,83 billion during April-November 2011 and the sectors that attracted maximum FDI during the period include services (financial and non- financial), telecom, housing and real estate, construction and power. Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are the major sources of investments in India.

India's foreign exchange reserves stand at about USD 321,00 billion as on September 02, 2011 according to the Reserve Bank of India weekly statical supplement and the rise is attributed to the increase in foreign currency assets as well as appreciation in gold reserves.

Government of India has set an export target of US$ 300 billion for current fiscal year, up 19% from US$ 246 billion in 2010-11 and the growth in exports have been achieved in spite of very challenging circumstances and global contraction of demand.

The Government notified 100% FDI in single-brand retail by removing the present investment cap of 51%. This would pave way for global chains to have full ownership of their India operations.

The economic and structural reforms have been stalled during the current policy stalemate and India has to identify several key imperatives to sustain growth momentum. Some of these measures include promotion of investments in high value agriculture, elevation of private investments in tier II towns in the areas of education, healthcare, organized retailing, tourism, infrastructure development and logistics services.

India has undergone a phenominal change in the past decade but its rudimentary market needs drastic transformation to upgrade formal and informal sector of economy.