India’s Economy in 2010
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India is an emerging economy which has witnessed unprecedented levels of economic expansion, alongside China, Russia, Mexico and Brazil. India is a cost effective and labor intensive economy, and has benefited immensely from outsourcing of work from developed countries, and has a strong manufacturing and export oriented industrial framework.
With India’s economic pace picking up, global commodity prices have staged a comeback from their lows and global trade has also seen healthy growth over the last two years.
India is an emerging economy which has witnessed unprecedented levels of economic expansion, alongside China, Russia, Mexico and Brazil. India is a cost effective and labor intensive economy, and has benefited immensely from outsourcing of work from developed countries, and has a strong manufacturing and export oriented industrial framework.
With India’s economic pace picking up, global commodity prices have staged a comeback from their lows and global trade has also seen healthy growth over the last two years.
Economic Prospects for 2010
The global economy seems to be recovering after the recent financial crisis in 2008. The Indian economy, however, was hit in the latter part of the global recession as real economic growth witnessed a sharp fall, followed by lower exports, capital outflow and corporate restructuring.
It’s expected global economies will continue to be sustained in the short-term, as the effect of stimulus programs is yet to tak and tax cuts are working their way through the system in 2010. Due to the strong liquidity positions in the market, large corporations now have access to capital in the corporate credit markets.
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India’s Economic Outlook Projection |
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2007 |
2008 |
2009 |
2010 |
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GDP Growth |
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9.40% |
7.30% |
5.40% |
7.20% |
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CPI |
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6.40% |
9.30% |
5.50% |
4.90% |
Indian Economy 2010
In order to sustain economic growth, government authorities in India have announced stimulus packages to prop up economic growth. To finance the stimulus packages, the Indian government has raised over $100 billion over the last four quarters. The country’s public debt, according to the RBI, has surged to over 50 percen of the total GDP and the RBI has started printing new currency notes.
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Central Government Debt |
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in Rs. Crores (10 Million) |
Q3 2008 |
Q3 2009 |
% of GDP |
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Public Debt (Sum of 1 and 2) |
2,099,286.23
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2,505,450.74
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50.71%
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1. External Debt |
237,351.77
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294,941.67
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2. Internal Debt |
1,861,934.46
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2,210,509.07
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