INDIAN ECONOMY

Indian Economic Stats

Indian Economic Stats

Introduction

The paper provides an economic overview of India from 2009-2012 by summarizing economic performance through a table. In the light of key macroeconomic indicators, the paper conducts performance analysis of key areas that contribute to the Indian economy. With the help of pre-established analysis of and literature on Indian economy, the paper concludes key performance findings on Indian economy.

Discussion

Overview of Indian Economy

Since early 1990, Indian economy has undergone major policy changes in the form of new economic reforms, which are focused on making India as one of the fastest growing economies of the world (Dhanabhakyam & Sakthipriya, 2012, p. 1). In the past ten years, India has set its focus on certain strategies to move the wheel of economy at a constant pace. These strategies include India's opening to foreign direct investments, devaluation, encouraging private investments and participation in the industrial sector, and disinvestment. Over the past ten years, Indian economy has shown a mix trend of progress (figure 1). However, the country remained successful in maintaining the stability of economic growth, in the past four years.

Figure 1: Trend of India's GDP Growth (Dhanabhakyam & Sakthipriya, 2012, p. 4)

The stability of economic growth was mainly contributed by the growing share of FDI sources in India (figure 2). During 2010-11, India's FDI inflows grew by 42% contribution of Mauritius investors, who made investments of worth US$ 6,637 million, in India. Moreover, Indian policymakers have focused on improving key macroeconomic indicators that contributed to stable macro economic framework.

Figure 2: Foreign Direct Investment Sources of India (Dhanabhakyam & Sakthipriya, 2012, p. 5)

According to World trade organization (2012, p. 18), India ranks 7th among the leading commercial service traders of the world with 34% trading share of the US (WTO, 2012, p. 18).

Figure 3: Leading Commercial Service Traders of the World (WTO, 2012, p. 17)

Performance Summary (2009-2012)

Overall analysis of macroeconomic indicators shows that Indian economy has proven to be one of the emerging economies of Asia with vigilant economic policies and business strategies. In the last four years, Indian markets have been opened to world trade in public and private sectors that has allowed India to report annual GDP of 78,842 billion, in the year 2012. Within the given frame of time, Indian GDP has shown tremendous improvement due to the growing contribution of service and industrial sectors of the economy. Indian economy has witnessed a structural shift from an agricultural dependence to a service and industry oriented economy.

In addition to this, a close examination of GDP components stats significant shift in the consumer pattern of demand and purchase. During 2009-2012, Indian consumption has grown at an average rate of 10.04% of the GDP, which proves that India has tremendous scope for international trade. Similarly, investments in the public and private sector grew at an average rate of 35.05%.

Line

Indian macroeconomic indicators 2009-2012

1

 

2008-09

2009-10

2010-11

2011-12

2

GDP data from national accounts, in local currency at constant prices

 

 

3

Consumption C

4,689 5,203 5,645 6,010

4

Investment I

17,142 16,914 18,500

23,502

5

Government G

1,501

1,610

...