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Where Does India Stand Economically?

Author: Macroeconomics School
by Macroeconomics School
Posted: Mar 29, 2016

It is not a secret that Indian Economy is counted as the seventh largest according to the nominal GDP (Gross Domestic Product) and third largest as per the purchasing power parity (PPP). Since India is filling and expanding industries of various sectors, the growth rate is thus increasing rapidly. There are various factors which constantly keep booming the growth rate such as savings, youth population, corresponding low dependency ratio and the investment rates.

The Statistics Of Indian Economy:

  • With lots of employment sources and business joints, Maharashtra is the wealthiest state in India with an annual GDP of US$220 billion.
  • Next to Maharashtra stands Tamil Nadu with US$140 billion followed by Uttar Pradesh with an annual GDP of US$130 billion.
  • This is the first time India have topped the World Bank’s growth with 7.6% in the year of 2015-16. It is expected to grow even 7.7-8.0% on the next season and by the next decade, India has the potential to even become the third largest economy of the world.
  • For GDP, India has expanded 1.70% in fourth quarter of 2015.

With the rapid development in corporate and industrial sector, India has become world’s fastest growing economy by replacing People's Republic of China. As per the IMF (International Monetary Fund) also, Economy of India is the "bright spot" in the global market.

Challenging Investments and Developments:

  • India made some of the strongest deals in terms of M&A (Merger and Acquisitions).
  • Private equity (PE) investments increased upto 86% by 1.43 billion.
  • In comparison to September, 2015 where the percentage of Index of Industrial Production (IIP) was 3.8%, in October, 2015 IIP peaked upto 9.8%.
  • In the Consumer Price Index (CPI) of India, the inflation rate increased 5.41% in comparison to the 5% in October, 2015.
  • Foreign Direct Investment (FDI) has set the record with US$ 34.9 billion in 2015 compared to US$ 21.6 billion in the previous fiscal year.
  • Also, it was reported that FDI reached upto 1.7% of GDP in 2015 compared to 1.1% in 2014.

Major Investments And Developments in Agriculture:

  • Being the leading tractor manufacturer of India, Mahindra and Mahindra (M&M) declared to start a brand of ‘NuPro’ for pulses. Rather, they have also announced to move forward the company with e-retailing and sale of dairy products.
  • IFFCO, fertiliser cooperative launched a joint venture with Japanese firm Mitsubishi Corp for manufacturing agrochemicals in India.
  • ICRISAT, agri-research institute is looking to set up (US$ 14.67 million) fund in a year for helping small entrepreneurs from agriculture and nutrition sector to raise money.
  • ADAMA, world's seventh-largest agrochemicals firm, based out in Israel is planning to invest US$ 50 million in India over the next three years.

Indian Economy being the fastest growing economy of the world, India has become major outsourcing network for sectors like IT, BPO, software and digital services. Initiatives like Make In India and Digital India will only add to the development with doubling the growth.

About the Author

Article by Sher Mehta, Ceo & Chief Economist, Macroeconomics School sher.mehta@macroeconomics-school.com

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Author: Macroeconomics School

Macroeconomics School

Member since: Nov 26, 2014
Published articles: 2

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