How do you rate Indian economy now?

The industrial growth numbers, for the past six months has shown a upswing in the production of upto 80% along with the manufacturing sector, mining and electricity sectors. The average growth numbers of the overall industry calculated for first four months of 09-10 was 4.6%. The improvement in industrial growth numbers came as a result of measures taken by the government and RBI to support overall economic activity.

Many can argue, that India’s growth is not so dependent on growth in the West. However, the Indian stock markets was hit by the global crisis which now shows a recovered stage and its trends have signaled revival of confidence amongst the Indian and foreign investors. India’s growing service sector and manufacturing sector has  less impacted by a global downturn. However, I still feel that India’s economic success is not dependent on growth in the West, and at worst India’s growth rate will be less than hoped for. Still the Indian government  have a target of 10% growth for 2010/11, which, I think could prove realistic.

Thanx to last quarter result with excellent growth in Industrial & manufacturing segment to achieve 7.9% GDP growth rate. However I still feel India's growth trajectory will be not very high at least till this fiscal year. Next quarter result is very important to make future prediction. I feel next qtr. result will be not as good as this quarter as it will be carrying the impact of bad monsoon.

One more thing I would like to add that we have seen good growth due to lot of stimulus support put in by the govt. which gets rollback sometime in the future.

I see stable growth for Indian economy for this fiscal and for the next fiscal lot of things depend how economy behaves once govt. rollback stimulus support.

I agree with all points raised here and if you can trust the numbers Indian economy is doing good. Tackling inflation without affecting recovery will be challenging. Also we will be facing tough competition from other low cost outsourcing options in the coming years. With rising food prices I expect more support, but on the other side is climbing deficit. Overall we have strong economic fundamentals, promising banking and financial sector and compared to US, Japan etc  we also have a favorable demographic profile on one side and challenges that are manageable on the other side.

Difficult to say. One thing is numbers, another - people without food. 

I believe, The money supply has increased and due to effective monetary and stimulus fiscal policy, India has able to generate itself a strong financial market. Bank credit has largely seen to increase in the government sector compared to the commercial sector. Both growth in retail sector and also in commercial banking has seen an aggregate growth. The Net foreign exchange assets are also accelerated.

Indian economy seems to be on a roll now. We are finding it difficult to contain the consequences of expansion underway. If the Central Bank tightens now then it will affect our expansionary situation or it might highten inflation.

Some studies now feels that bubles are after all good for an economy. Especialy in our case we need to expand a lot to reduce the income inequality. If they tighten then it will only prolong the injustice for more time than required.

If the Global economy rebounds then the contractionary policies may not affect the general state of the economy as much as it will, if they, now.

I feel our economy is gradually coming out with that negative effect which we had due to global meltdown the last year. Seeing the rate of outcome, feel the next 3-4 yrs we can reach the 9% GDP levels and outperform globally. However, we cannot ignore the global cues and improvement for getting better pace of growth in coming time... Thank you, Manish N.

Cheers!!

In indian development rate is incresed more as compared to past...without making any degradation in other economic zones . The best example is 6th pay commision ........it increses the status of middle level families.