Advantage India-"World's largest democracy with 1.2 billion people."

  • *Stable political environment and responsive administrative set up.

*Well established judiciary to enforce rule of law.

*Land of abundant natural resources and diverse climatic conditions.

*Rapid economic growth: GDP to grow by 8.5% in 2010-11* and 9.0% in 2011-12.

*India's growth will start to outpace China's within three to five years and hence will become the fastest large economy        with    9-10% growth over the next 20-25 years (Morgan Stanley).

*Investor friendly policies and incentive based schemes.

*Second most attractive Foreign Direct Investment (FDI) location in the world: India received a total of US$ 25.9 billion of FDI in 2009-10.

*Healthy macro-economic fundamentals: Investment rate is expected to be 37% in 2010-11 and 38.4% in 2011-12 while Domestic Savings rate is expected to be 34% in 2010-11 and 36% in 2011-12.

*India's economy will grow fivefold in the next 20 years (McKinsey).

*Cost competitiveness; low labour costs.

*Total labour force of nearly 530 million.

*Large pool of skilled manpower; strong knowledge base with significant English speaking population.

*Young country with a median age of 30 years by 2025: India's economy will benefit from this "demographic dividend".

*The proportion of population in the working age group (15-59 years) is likely to increase from approximately 58% in 2001 to more than 64% by 2021.

*Huge untapped market potential.

*The urban population of India will double from the 2001 census figure of 290m to approximately 590m by 2030 (McKinsey).

*Progressive simplification and rationalization of direct and indirect tax structures.

*Reduction in import tariffs.

*Full current account convertibility.

*Compliance with WTO norms.

*Robust banking and financial institutions.

"* India's financial year is from April to March. 2010-11 above means April 2010-March 2011."

Indian Economy

India has undergone a paradigm shift owing to its competitive stand in the world. The Indian economy is on a robust growth trajectory and boasts of a stable annual growth rate, rising foreign exchange reserves and booming capital markets among others.

The Indian economy posted a robust growth of 8.9 per cent in the second quarter (July- September) of the current financial year 2010-11 on the back of a strong performance of the farm and services sectors. The better-than-expected growth was driven by a robust farm output that grew by 4.4% during the quarter up from 0.9% in the corresponding period a year ago.

Agriculture Sector

Agriculture and allied activities grew by 4.4 per cent. The growth rate estimates of GDP in Q2 are based on the anticipated production of fruits and vegetables, other crops, livestock products, forestry and fisheries, which show growth in the range of 3-4 per cent.

According to the recent released data by the Ministry of Agriculture, production of rice, coarse cereals, pulses and oilseeds is expected to grow by 5.9%, 19.4%, 39.3% and 10.3% respectively during the Kharif season of 2010-11 as compared to the production of these crops in the Kharif season of 2009-10.

Manufacturing sector

Manufacturing sector has grown by 9.8 per cent during the second quarter (July-September) (Q2) as compared to 8.4 per cent during the same period last year (2009-10).Construction too grew by 8.8 per cent compared to 8.3 per cent. Mining and quarrying sector grew by 8.0 per cent in Q2 of 2010-11.

Services Sector

Among services, financial, insurance and real estate services expanded by 8.3 per cent, while community, social and personal services growth was registered at 7.3 per cent.

In the transport and communication sectors, the production of commercial vehicles, cargo handled at major ports, cargo handled by the civil aviation, passengers handled by the civil aviation and the total stock of telephone connections (including wireless local loop and cellular) registered growth rates of 4.5 per cent, 0.5 per cent, 25.3 per cent, 12.2 per cent and 38.7 percent, respectively in Q2 of 2010-11 over Q2 of 2009-10. 

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