Asia’s Economic Growth: Spotlight on India

According to a recent poll from Reuters, it appears that economic growth in India has witnessed an escalation in the first quarter of 2013. This is particularly good news for the Asian region given that it has encountered quite a substantial low in the last quarter of 2012.  This report indicates that India could be on the upswing, moving away from its downward spiral.

However, there is still much work to be done vis-à-vis strengthening India’s economy.  Indeed, according to economist Kruti Shah, this recent statistic is “only a marginal improvement with much of the support from a slight recovery in the manufacturing sector and better trade data in this quarter compared to the previous quarter.”   However, given that there has been somewhat of a recovery in the country’s exports, factories and investments, this had a positive, noteworthy impact on the performance of the overall economy. There was a slight increase in capital goods output as well as exports which saw an escalation from levels during the same time period as 2012.

Economists and financial predictors must still be aware of India’s current account deficit that witnessed an all-time high in the last quarter of 2012 and still today remains under substantial pressure. But simultaneously, inflation dropped below 5 percent in April 2013, which puts it in the Central Bank’s comfort zone for the first time in over three years.

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India Initializes Plan to Boost Economy

According to shipping minister GK Vasan, the Indian government has come up with a plan to boost its country’s economy after its most recent slide, with the help of the infrastructure sector.

“Lately, sustainability of a high growth rate has been a subject of much discussion, especially in the wake of the 2011-12 GDP growth rate falling to 6.5%, which was the lowest in the last nine years,” he said.

Still, for the global situation, 6.5% isn’t too bad.

“Notwithstanding the current dip in growth rate, the economy is expected to bounce back and resume its high growth trajectory. We need to either ride the tide when the economic growth is high, or invest to spur the growth itself. We need to seize this moment,” he said.