India Continues With Solid Economic Growth

First Published: July 14, 2010 ADawnJournal.com

The recession has been good and bad for India. With the recession, spending has gone down and the amazing growth in auto sales has slowed. In years past the industry grew by 30 percent per year, but this past year it grew by only 15 percent as more and more people in India began to hold back on spending. However, overall the economy of India has continued to grow even during the recession. The International Monetary Fund recently announced that in 2010, the forecast growth for the country is 9.5 percent. The reason for this is the high corporate profits, as well as the financial conditions that were very favourable.

Originally, India was expected to only have a growth of 8.8 percent, but that was raised as the country continued to do well as the world moved out of a recession. The growth of 9.5 percent is roughly two percent above the growth for last year in India, which stood at only 7.4 percent. This is better than the global economy growth which only stood at five percent in the first quarter of 2010. This shows that India is doing very well and continuing to grow while the recession has hurt other countries. Asia as a whole is doing very well, and that is helping India as its major trading partners are in Asia, as well as the United States, which outsources a great deal of work to the subcontinent.

However, if you are looking for a country to invest in, India does have its benefits but its growth is still lower than that of China, which has a growth of 10.5 percent right now. Japan in contrast is the second largest economy on Earth, but it only had a growth of 1.9 percent, which was well below that of India. This shows that India’s economy is stronger at the moment than some of the largest economies on the planet. Throughout the recession, many investors worried about investing in India because the country had never gone through a huge recession such as the one in the last 2000s. However, after some initial hiccups, the economy of India began to grow once again, move past the rest of the world in terms of the speed of growth, only beaten by China.

This allowed investors to determine India is a country that is growing quickly and rapidly, and is still seeing huge growth while other countries are struggling. The recession has begun to fade and with it India is again moving forward.

This continues the process that began in the late-1990s when India began to implement major reforms for its economy. This allowed India to grow in economic power, which has helped its citizens have a better standard of living. More people buying in India helps the economy grow, and the better the economy grows, the more India can export cheaply to other countries like Canada, America and China.

If you are looking for a country to invest in, invest one of the few that actually did well during the recession