Indian Economy is fastest growing economy of the world

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India's gross domestic product (GDP) can expand by double-digit levels to emerge as the fastest growing economy in the world by 2014, even as spiralling prices remains the immediate concern, says the Economic Survey for this fiscal.

"It is entirely possible for India to move into the rarefied domain of double-digit growth and even don the mantle of the fastest-growing economy in the world within the next four years," said the survey, a day ahead of the federal budget.

"The Indian GDP can be expected to grow around 8.5 percent (plus or minus 0.25 percent), with a full recovery, breaching the 9 percent mark in 2011-12," said the survey tabled by Finance Minister Pranab Mukherjee in the Lok Sabha.

"In the medium term, it is reasonable to expect that the economy will go back to the robust growth path of around 9 percent that it was before the global crisis slowed it down in 2008."

The survey said there were several reasons to suggest that the India's economic fundamentals remained strong, including high savings and investment rate, the arrival of home-grown companies in the global space and the dream run for the services sector.

At the same time, agriculture continues to be the cause for concern even as it remains the mainstay of the Indian economy, with the bulk of its workforce dependent on farming, either directly or indirectly.

"There is need to undertake serious policy initiatives to reach the government's target of sustained 4 percent growth in this sector."

The survey also expressed concern over rising prices, especially in essential items that has pushed the country's annual food inflation, based on wholesale prices, to nearly 18 percent in recent weeks.

"As of now the outlook for inflation is conditioned by supply-side pressures in the near term," said the survey while also making a veiled criticism in the manner in which the government has sought to tackle rising prices.

"Making available adequate and timely quantities of these items and at different locations to overcome supply side mismatches is the real challenge," the survey noted, adding in some essential items there were ample stocks.

The annual report card also said the current rebound in growth called for the gradual withdrawal of the $37-billion stimuli since December 2008 to help the country weather the ills of global slowdown.

"The largely structural nature of fiscal deficits in India, the levels of recovery in the economy and the sustainability of the recovery without fiscal stimulus call for resumption of process of fiscal consolidation in a gradual manner."

At the same time the export sector needed a further push, even as it said that the outlook for India's merchandise trade has brightened in 2010 with the prospects of a recovery in world output and trade volumes.

"While in the short-term, stimulus measures have worked, some fundamental policy changes are needed. For the merchandise sector these include furthering tariff reforms by lowering the peak duties from the present 10 percent to 7.5 percent."

India, fastest growing economy in 4 years
 
I agree

Yes, it’s absolutely correct to say that India is one of the fastest growing economies in the world today since last 4 years and is also seen to be same in the next coming four years.

Definitely, there is no sector left that is not showing growth since this period of 4 years whether it is technology, science, power, railways or any other sector.
 
yes reports have shown that india is the fastest growing economy. india is taking up various advancements in wide variety of sectors. and in future there are expectations that indian GDP will grow much higher. but indian government should take care that people are not scorched by the inflations which result in price rise.
 
its good to know that indian economy is the fastest growing economy. no wonder india has made lot more progress in various other fields such as science and technology, infrastructure, exports of various commodities and also it has become one of the greatest purchase power. nevertheless india is going to mark its name in the top list by becoming stable developed economy.
 
Indian economy has over comed a lot of disparities since the time of India's independence. India is now a fast growing economy and has become the 3rd largest economy of Asia and is aspiring to become one of the largest economy of the World. India had seen a growth in various fields like technology, telecom, agriculture etc. It has become one of the biggest outsourcing country and this is a remarkable development in the economic sector. The only issue is with our economy is the fault in our economic policies and if these are reformed, it can be resolved and become a developed economy.
 
Indian economy is definitely a fast growing economy and have progressed in various sectors but still India needs to improve on its infrastructure and make policies that will enhance the economic growth of the nation. This will help in making India a developed economy. India has developed remarkably in the IT sector and this sector has helped immensely in the economic growth of India.
 
It is true that Indian economy is growing fast and have tackled a lot of issues that it faced after the Independence but India still have to go a long way to become one of the developed nations of the World. India tops the list in many things, however, it lacks in proper infrastructure, which is a major obstacle in its progress and development and by improving it, the nation can become the most developed one as it has potential along with resources.
 
Yes, Indian economy is a fast growing economy and the major contributor in this respect is the development in the IT sector as well as the telecom sector. India is now the 2nd largest software developing nation in the world and ranks 3rd in the World's telecom market, which is remarkable. However, with a little change and reforms in the economic policies, India can soon become a developed economy.
 
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