As per India economic review, Indian economy has been among one of leading performers in global economic scenario. However, there have been a couple of problems like inflation that have offset progress of Indian economy in recent times
Growth of Indian economy
As per economic review of India, this nation has been making steady progress in last few years, a fact which is obvious when its rate of growth in last couple of financial years is looked at. For example in financial year 2006, rate of growth achieved by Indian economy was 9.6 percent and in fiscal 2007, this rate came down a touch to about 9.2 percent.
There have been a number of causes behind growth of Indian economy in last couple of years. A number of market reforms have been instituted by Indian government and there has been significant amount of foreign direct investment made in India. Much of this amount has been invested into several businesses including knowledge process outsourcing industries.
India's foreign exchange reserves have gone up in last few years. Real estate sector as well as information technology industries of India have taken off. Capital markets of India are doing pretty well too. All these factors have contributed to growth of Indian economy.
Problems of Indian economy
However, as of financial year 2008, situation of Indian economy is far from being rosy. A number of economic crises have besieged Indian economy of late. Rates of inflation have been high. Reserve Bank of India, which is apex economic body of India, has been trying its best to limit rate of inflation to 4 percent but by middle phase of financial year 2008, rate of inflation had reached 11 percent. This has been highest in last decade and one year.
There have been other problems like increase in expenses of important commodities like food and oil. India is facing a boom in construction industry, but there are not enough resources. Problems like these are only adding to India's woes. India has also been hit hard by ongoing global recession and it is being assumed that it would take a bit of time for Indian economy to come out of it.