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Why Choose India - Economy Strengths


India's economy is on the positive note of an ever increasing growth curve. With positive indicators of a stable 8 percent annual growth, rising foreign exchange reserves of close to US$ 140 billion, an emerging capital market with the popular "Sensex" index topping the majestic 12,000 mark, increasingly flowing foreign direct investment (FDI) close to over US$ 8 billion, and a more than 21per cent surge in exports, it is easy to understand why India is a leading destination for foreign investment and outsourcing destination.

 

Highlights of the Indian Economy in 2005-2006

As per the data released by the Govt. of India, the GDP grew by 7.4 per cent in the first quarter and 6.6 per cent in the second quarter of the current year, compared with 5.3 per cent and 8.6 per cent in the corresponding quarters of the previous year. The Economic Survey 2005-06 estimates that the GDP will grow at 8.1 per cent. Growth of Gross Domestic Product (GDP) at constant prices in excess of 8.0 per cent has been achieved by the economy in only five years of recorded history, and two out of these five are in the last three years.

 

Prospects of agricultural production in 2005-06 are considered to be reasonably bright due to near normal monsoon. The agricultural and allied sector's growth in 2005-06 is projected at 2.3 per cent. With a good crop prospects, food grain production is expected to increase to 209 million tonnes (MT) in 2005-06 from 204.6 MT in 2004-05. Some significant dimensions of the dynamic growth in recent years are: a new industrial resurgence; modest inflation in spite of spiraling global crude prices; a pick up in investment; rapid growth in exports and imports with a widening of the current account deficit; the launching of the National Rural Employment Guarantee (NREG) Scheme for inclusive growth and social security; and laying of some institutional foundations for faster development of physical infrastructure; progress in fiscal consolidation.

 

The industrial sector too has been on all time high. The rate of growth of industrial sector as measured in terms of Index of Industrial Production (IIP) during April-December 2005-06 was 7.8 per cent. Impressive performance of the manufacturing sector, which grew at 8.9 per cent
during this period, largely contributed to these figures.

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KPO Experts India