After several years of rapid growth, 2009, will prove a testing year for India.
Inflation Inflation continues to pose a threat. Inflation peaked at 12% in early August ‘08. Inflation, is being caused by rapid growth (demand pull factors) but, also the cost push inflation factors (rising oil prices). Hopefully, the fall in oil prices and higher interest rates will reduce inflation without causing too much of a slowdown.
Economic Growth. After reaching growth of 9.8% in 2007/08, growth is expected to slow down to 7%. This might not be a bad thing as it will avoid inflationary pressures building further. However, some worry the global credit crunch could reduce growth much more.
Global Recession and Indian Economy. It appears that Europe, Japan and the US are entering into recession. Falling house prices, crisis in the financial system, and lower confidence could lead to a sharp downturn, with the worst still to come.
Many argue, that India’s growth is not so dependent on growth in the West. However, the Indian stockmarkets have been hit by the global crisis. India’s growing service sector and manufacturing sector would be adversely 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.
The Indian government still have a target of 10% growth for 2010/11, but, I think this could prove unrealistic.
Challenges for Indian Economy in 2009
- Getting inflation under control
- Spreading the benefits of growth more equitably.
- Completing investment projects which are essential for long term development of economy.
- Dealing with global financial uncertainty, which will make capital flows and exports more difficult.
Sensex in 2009
After falling in 2008, the Sensex could offer one of the best returns for global stockmarkets. India’s strong economic growth will buck the global trend for lower growth.
Indian Rupee 2009
The Indian Rupee has had a surprisingly weak year. The Rupee has fallen from 39 Rupee to 1$ in January 2008, to 44 Rupee in September. Real interest rates in India are still negative, but, if the Indian inflation rate is reduced, and the government resist the temptation to go all out for growth, the Rupee may rebound, at least against the dollar, which will face more difficulties in 2009
More on Indian Economy
- Indian economy set to grow despite downturn – Indian Reuters
- Indian economy – wikipedia
- Problems facing Indian economy
43 comments ↓
[...] Indian Economy 2009 [...]
after nuclear deal govt expect only 39 rupee equall to 1 $ i think govt expect rupee value is morthan $
what are indicators to control the inflation due to international economy in the world who are responsiple ?
when will push up the economic condition by various policies of various countries in the world?
In 2009 Indian Economy will be in doldrums. Government is pressurizing to reduce the interest rate. Mortgage Finance(More Popularly- Housing finance) Government is arm twisting banks to reduce the interest rate but at the same time developers are not reducing the price. What happened in USA Sub-Prime crisis it will be repeated in India. Similarly in infrastructure. Projects are taking longer time to complete it. Unemployment is another issue.
indian economy is in downturn.but it is expected to bounce back in second half of 2009, with elections around the corner and effectiveness of stimulus package will show its results in second half. in short term indian economy will face tough times and umemployment and low economic growth are issues to look upon
india economy in 2009. Only GOD knows
dafinately Indian Economy will bounce back but for that we have to reconsider our financial policies & turn into action without failure
Indian economy has been over boiled for the past 4 years, following the global boom. The inflation is at its peak with the property prices still not cooling off compared to the expection of 40-50% lower to the current levels. All the banks are holding onto the cash reserves and there is subdued in the lending segment. Obviously, this will cool off the economy. The margin of almost all the companies has come down in last quarter 2008. The year 2009 is very challenging, we can see more cost cutting from the companies, halt in the new requirements and fall in the exports and productions which will be a set back. With the election in the mid off the year, global investors with be very cautious to invest in the Indian market. Ultimately will be caught in the wind of the recession.
I think recession is the right time for investment in traditional businesses i.e agriculture, food etc etc. This is also the right time for the government to implement and identify the instruments to control the economy, inflation and interest rates. By investing in the implemention of services & instruments for the control of economy, incorporating & modernising public health system, modernisation of policing,implementation & upgradation of key public sector projects i.e dams, roads, motorways, powerplants, railways, it is posible to boost the demand which can eventually kick start the economy. Indian economy is easily being affected by changes in the agriculture industry. This is a great instrument in controlling the economy. By boosting & modernising and implementing the logistics in this sector this country can acheive a lot.
indian economy will be doing good in this recession time.railway sector and public sector banks are performing well.in the coming year tourism will help us a lot ingetting foriegn currency.if ipl will be held in this session.it will also help.
DEEPAK THINKS THAT HE WILL DO GREAT FOR INDIAN ECONOMY
what government has shown in the recent five years was immense fluctuations in the capital and product and service market. each and every sectors of economy was hit hard. my question to the current government is what are the measures they have taken to avoid such fluctuations?
well thinking about 9%-8% growth is like day dreaming,
when we face grave situtation like deflation(where the real products which we cosume is expensive,this is not
deflation to any amm adami)
we have elections comming,where no party is capable of forming a government on its own.
the prime minester is simply not able take his decisions,
this will defenitly effect the growth prospects of our country.
Indian Economic service sector & manufacturing sector has gone fully down this year. 2009 is very bad to all the sector which not pickup the economic growth.
Share market are gone down, Mumbai attack, IPL canceld, election appears etc.
No word to say this year all are in trouble.
God pls save us
Indian economy is doing good. Its the time of affordability.
Prices have become cheap, new opportunities growing. Yes there are some financial factors to be considered but as a whole – we are much better. Green shot effect is already felt in the west, its a matter of time. More concerned about the banking system. How long will it take to align their business model re-structuring – will be matter of few years or generations to come!!!!!!!
indian economy is in avery critical position.though measures are being taken by RBI nothing is going well for the country.india can only bounce back when the money flow is maintained well but this is not happening.globalisation, liberalisation are doing a very little with the undeveloped countries.
indian economy is very good economy ,it is very useful for all peoples.
i think it will possible to get the control on econonmyand to take the right steps to immprove the economic status of country after this election. where the same upa govt came to power in central.
hi
wat r d effects of elections 2009 on the indian economy
Accroding to my View indian economy is improving day by day ,In other words , if indian government , pay some more attention on FDI , so it will be great task to earn foriegn currency , and india can become more strong in terms of economy .
Ruchit Sharma
+91-9650652998
According to economy is improving day by day in other country, Indian government is improve the export quantity level and enrage the people for export goods…
and all the people should pay the tax is correctly the Indian economy automatically moving on high level. and develop on the agri – product is increase rural area….
Rajesh kumar MBA.,
why is the effect of crises in indian economy
hi, this is the great opportunity for me i have some problems so i want knew about sensex.so
1.what is meant by sensex?
2.how it is measured?
3.why global economy depend upon this sensex?
indian economy is the very good economy in the world.it is the modern for all globelised countries.
When will have an enhancement in Stock Market?
As economy is changing rapidly in another developed countries INDIAN government has to increase exports
our indian economy is very strong compares to other countries but from last year it’s gone down due to recession then also we are making weak our economy by increasing the rates of daily useful things like foods material and another things. by the way employes are getting that much salary which they got form last 3-4 years this is the main point
hey how much 2009 mansoon will effect economy and how?
indian econome is down compare to previous year.
Indian economy has a long way to go and face the heat of the global reccession.what now for the Indian economy should be to find out the ways and means to survive, not to keep on blaming the recession.
Lower corruption, transparency in politics, stable & responsible government, solid infrastructure, secure borders, balance protectionism with foreign investment, become self sufficient in energy/power especially green & renewable sources, Green Sustainable policies geared towards the environment & climate, assist home corporations to compete effectively on a global scale – Implement all above & can expect economy to overtake US
Indian government has to developed plans which crack indian recession. Specially for IT industry. Why we are outsourcing. India having a biggest IT talent peoples. Why we are not using China concept. They are working under the same flag.
I think recession is the right time for investment in traditional businesses i.e agriculture, food etc etc. This is also the right time for the government to implement and identify the instruments to control the economy, inflation and interest rates. By investing in the implemention of services & instruments for the control of economy, incorporating & modernising public health system, modernisation of policing,implementation & upgradation of key public sector projects i.e dams, roads, motorways, powerplants, railways, it is posible to boost the demand which can eventually kick start the economy. Indian economy is easily being affected by changes in the agriculture industry. This is a great instrument in controlling the economy. By boosting & modernising and implementing the logistics in this sector this country can acheive a lot.
we r fortunate that we r growing in india n also that our economy growing so fastly that we will b at position 2 by 2020. so friends do work always.
Indian economy at persent is facing a negative growth obviously because of the rescesion. Its noticible that even the value of the Indian currency in international market has fallen sharply due to the same. Hence its clear that privet sectors are doing better and that more ane more compinies are becoming privet undertakings with the prime motive of earning profits!
hi people,u know who will be escape from this economic problem…………………….
ANSWER- WE ALL R INDIANS
no doubt, its pain ful time for most of d emerging countris.as per d indian economy is concern…it has also effected wid d global downturn and sub prime crisis which was started since 2007…rupee has depreciated 28%against dollar,stock market has shrinked48%,according to9 forbes asia report net combined wroth of 40 indian businessman has declined $139bn dollar frm $369bn….it shows dat indian economy has very much effected….not only dis but hi economic growth has also very much effected…it is 6%in d first quarter declined frm 9%growth rate of last year….
There is need of some improvement in the process and techniques of economic growth to make a strong economy.
if indian govt will introduce a petroleum cards system like a rahsan cards
INDIAN ECONOMY GOING TO VERY GOOD POSITION. BUT, SOME OF THE FACTOR AFFECTING IN OUR NATIONAL IN ALL POINT OF VIEW.
The Indian economy is so bad because of inflation. India is the only country thats even close to China in population. The weird part is Indias a democracy.
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