Thursday, January 20, 2011

THE INDIAN ECONOMY 2010

Indian Economy 2010




The Indian economy has survived the global downturn well. It has posted one of the highest rates of economic growth rates in the world.



At the end of 2009, the Indian economy was growing at 7% a year. The strongest growth was coming from the manufacturing and construction sector (with growth of 9% a year). The weakest section of the economy was agricutlture which showed growth of just 0.9%



The strong rate of economic growth boosts prospects for the Indian Rupee in 2010. With such a high rate of growth, interest rates are likely to be higher in India than elsewhere. It could make India an attractive place for depositing money.



Problems of Indian Economy 2010

The drawback of such a rapid economic expansion is a rise in inflation and prospects of more inflation in 2010. In the middle of 2009, the official inflation rate was briefly negative, but this was due to prices being much higher the previous year.



More worrying has been the food price inflation, which has touched 15%. This food price inflation hits the poorest the hardest and threatens to widen the gulf of inequality that exists in India.

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