After several years of rapid growth, 2009, will prove a testing year for India.
Inflation Inflation continues to pose a threat. Inflation peaked at 12% in early August ’08. Inflation, is being caused by rapid growth (demand pull factors) but, also the cost push inflation factors (rising oil prices). Hopefully, the fall in oil prices and higher interest rates will reduce inflation without causing too much of a slowdown.
Economic Growth. After reaching growth of 9.8% in 2007/08, growth is expected to slow down to 7%. This might not be a bad thing as it will avoid inflationary pressures building further. However, some worry the global credit crunch could reduce growth much more.
Global Recession and Indian Economy. It appears that Europe, Japan and the US are entering into recession. Falling house prices, crisis in the financial system, and lower confidence could lead to a sharp downturn, with the worst still to come.
Many argue, that India’s growth is not so dependent on growth in the West. However, the Indian stockmarkets have been hit by the global crisis. India’s growing service sector and manufacturing sector would be adversely impacted by a global downturn. However, I still feel that India’s economic success is not dependent on growth in the West, and at worst India’s growth rate will be less than hoped for.
The Indian government still have a target of 10% growth for 2010/11, but, I think this could prove unrealistic.
Challenges for Indian Economy in 2009
- Getting inflation under control
- Spreading the benefits of growth more equitably.
- Completing investment projects which are essential for long term development of economy.
- Dealing with global financial uncertainty, which will make capital flows and exports more difficult.
Sensex in 2009
After falling in 2008, the Sensex could offer one of the best returns for global stockmarkets. India’s strong economic growth will buck the global trend for lower growth.
Indian Rupee 2009
The Indian Rupee has had a surprisingly weak year. The Rupee has fallen from 39 Rupee to 1$ in January 2008, to 44 Rupee in September. Real interest rates in India are still negative, but, if the Indian inflation rate is reduced, and the government resist the temptation to go all out for growth, the Rupee may rebound, at least against the dollar, which will face more difficulties in 2009
Indian Economy 2010
More on Indian Economy
- Indian economy set to grow despite downturn – Indian Reuters
- Indian economy – wikipedia
- Problems facing Indian economy
Indian economy is doing good. Its the time of affordability.
Prices have become cheap, new opportunities growing. Yes there are some financial factors to be considered but as a whole – we are much better. Green shot effect is already felt in the west, its a matter of time. More concerned about the banking system. How long will it take to align their business model re-structuring – will be matter of few years or generations to come!!!!!!!
indian economy is in avery critical position.though measures are being taken by RBI nothing is going well for the country.india can only bounce back when the money flow is maintained well but this is not happening.globalisation, liberalisation are doing a very little with the undeveloped countries.
indian economy is very good economy ,it is very useful for all peoples.
i think it will possible to get the control on econonmyand to take the right steps to immprove the economic status of country after this election. where the same upa govt came to power in central.
hi
wat r d effects of elections 2009 on the indian economy
Accroding to my View indian economy is improving day by day ,In other words , if indian government , pay some more attention on FDI , so it will be great task to earn foriegn currency , and india can become more strong in terms of economy .
Ruchit Sharma
+91-9650652998
According to economy is improving day by day in other country, Indian government is improve the export quantity level and enrage the people for export goods…
and all the people should pay the tax is correctly the Indian economy automatically moving on high level. and develop on the agri – product is increase rural area….
Rajesh kumar MBA.,
why is the effect of crises in indian economy
hi, this is the great opportunity for me i have some problems so i want knew about sensex.so
1.what is meant by sensex?
2.how it is measured?
3.why global economy depend upon this sensex?
indian economy is the very good economy in the world.it is the modern for all globelised countries.
When will have an enhancement in Stock Market?
As economy is changing rapidly in another developed countries INDIAN government has to increase exports
our indian economy is very strong compares to other countries but from last year it’s gone down due to recession then also we are making weak our economy by increasing the rates of daily useful things like foods material and another things. by the way employes are getting that much salary which they got form last 3-4 years this is the main point
hey how much 2009 mansoon will effect economy and how?