India: A Compelling Market

Dec 29, 2009

India's $1.2 trillion economy grew at 7.9 per cent in the second quarter of the current fiscal (ended September 30). Manufacturing for this period grew at 9.2 per cent while services grew at 9.3 per cent. Agricultural growth was weak. Growth estimates for this fiscal year (April 2009-March 2010) pegged at about 7 per cent. Likely to touch 9 per cent next year.

Last few years growth at over 8 per cent. Sectoral growth drivers include: manufacturing, communications, trade, agriculture and construction.

The structure of India’s economy changed over the last ten years with contribution of the services sector to GDP at well over 50 per cent and share of merchandise trade doubling to 38.9 per cent of GDP in 2008-09.

In fiscal (April-March) 2008-09, the value of merchandise exports reached US$ 168.7 billion with a growth of 3.6 per cent.

India improved its rank in world merchandise exports from 28th position in 2006 to 26th position in 2007 and 2008. In commercial services exports it improved its rank from 10th position in 2006 to Ninth position in 2007 and 2008.

Step-up in the trend growth rate of the Indian economy since around 2003-04 has come about due to significant improvement in investment and saving rates.

Investment rate in India has increased from 25.2 per cent in 2002-03 to over 39 per cent in 2007-08.

OIFC is a not for profit public private initiative between the Ministry of Overseas Indian Affairs (MOIA) and the Confederation of Indian Industry (CII) aiming at expanding the economic engagement of the Indian diaspora with India.

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