Economy Statistics on India’s Economy has shown that the country's economy has experienced a robust growth in the second quarter of the year 2006-07. The Gross Domestic Product in the country increased at an impressive rate of 9.2 percent per annuam. The GDP Growth was mainly led by the fast rising industrial production as well as the growth in the services sector.

The Real growth rate of Gross Domestic Product of India over various quarters for the year 2006-07 is as follows:

For the second quarter of the year 2006-07, the agriculture and allied activities grew at a rate of 1.7 Percent, industries grew by 10.5 Percent, and the services sector grew by 10.7 Percent. The infrastructure industry in the market economy like India grew at a rate of 7.8 percent during the period of April-Nov 2006. The services sector was led by the sub-sectors such as hotels, restaurants, transport, storage and communications.

Fiscal Situation In India:

The Fiscal Responsibility and Budget Management Act in India has resulted a declining deficits both in the center and state levels. Some deficit indicators are expected to decline by 0.7-09 Percent of GDP for the year 2006-07. The Fiscal deficit in India has declined in the recent times.
The Tax Collections of the Government has increased, particularly the taxes such as Income Tax, Corporation Tax and the Service Tax. Tax collections from the new taxes such as Fringe Benefit Tax and Cash Transaction Tax have also increased. On the other hand the Non-Plan Expenditure of the Government has increased.

Inflation In India:

Global Inflation level is regarded as a major Challenge in the process of economic development. In India Particularly the prices of foods and manufacturing products in the second quarter increased at a faster rate. Both the Monetary policies as well as the Fiscal policies have helped a lot in checking the rate of inflation in the country.

India in the International Scenario:

India’s international participation has increased at a faster rate recently. The merchandise exports of the country have experienced a strong growth. Growth in the exports of services remained buoyant. Foreign Exchange Reserves in the country also increased at a faster rate in the country. USA, UAE and OPEC countries remained as the top destinations for the exports.

Conclusion:

Participation of the India’s Economy with the world economy has created enough opportunities for India to grow. Starting from Doing Business Report to the International Rankings, the Indian Economy has become able enough for getting good rankings.

Traditional Economy |  Command Economy |  Globalization In India |  Indian Policies |  Insurance India |  India Economy Reforms |  India Debt |  India Budget |  India Budget 2008