HomeContact Site map   Google    www    iipm think tank
   
   
Home Scrutiny Publications Under Cover Mus'ings  
 

Home > Scrutiny > India Whining! The new slogan?!

  
   
     
   Case Studies  
       
  Marketing    
  Human Resource    
  Information Technology    
  Finance    
  Strategy    
       
 
     
   Industries  
       
  Steel    
  Glass    
  Banking    
  Prophylactic    
  Auto    
  Hospitality    
  Energy    
       
 
     
   Other links  
       
  IIPM    
  Planman Consulting    
  Planman Marcom    
  Planman Technologies    
  Daily Indian Media    
  Planman Financial    
  4P's Business and Marketing    
  Business and Economy    
  The Daily Indian    
  The Sunday Indian    
  Arindam Chaudhuri    
  GIDF    
       
 
  
         
Scrutiny
  
India Whining! The new slogan?!
It’s hard ‘economic’ times for India and Indians... When will it end?
11/12/2008

‘Immunity’ is not the word to swear by for any economy in this globalised world, not even for India! Yes, as the world slips into recession, India is also facing the heat of lowered sentiments, with its GDP slated to fall by at least 2% by the year 2009. Really, this time round the consequences for the Indian economy can be harsher than what was witnessed in 1982 when the GDP growth fell by 1%!

The best-case projection, by New Delhi-based Centre for Monitoring Indian Economy (CMIE) forecasts India’s GDP to grow by 8.7% during 2008-09. For the following year though, the best-case scenario gets modest at just about 8%. And the worst case? Well, Goldman Sachs is already out with it, with predictions of a slower 6.7% GDP growth this fiscal and a snail speed 5.8% for 2009-10. The real point to worry about at the moment is how the 2% drop in GDP growth would transform at the household and per-capita levels. New Delhi- based analytics firm Indicus Analytics assumes the average inflation to remain at 9% for 2008-09 and 6% for 2009-10. Reports estimates that at the macro level, for the fiscal ending March 2009, the total difference in GDP (considering the current prices) between best and worst growth projections will be Rs.20.37 billion. Horrifyingly, the gap is projected to increase to a gargantuan Rs.2.08 trillion during 2009-10! This Rs.2 trillion-odd figure is about 8% of private financial consumption expenditure (PFCE) for 2007-08. In addition to this, investment-led growth (which accounted for over 55% of GDP in 2007-08) is noticeably slowing down on the back of expensive and hard-to-get credit.

This downturn has caught India by the collar, and going forward, it may even turn into a hanging noose for many! How does the government react to this change of pace of the global economy? (And which government are we talking about?) And the common Indian, well, he looks so ‘confused’... Are you too?!

By:- B&E
Back

  
 
 
       
Home | Scrutiny | Publications | About us | Contact us
Copyright @2010 iipm think tank. All rights reserved.