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Current economic trends and global business environment (vishakha pithwal)Presentation Transcript
Symbiosis Institute of Media and Communication, Pune Current Economic Trends and Global Business Environment India’s GDP: The road ahead -Prof Ashish Kulkarni Submitted by Vishakha Pithwal 141 MBA Ad 2011-13
Expected recovery in Indian Economy did not materialize in 2012-13 GDP growth projected to be around 5.5%-6%much below the Asian average for developing countries, which is projected at 7.2% Last year also, it was marginally below its Asian average at 6.5%
So do we have any reasons to believe that it will grow faster in 2013-15?
One indicator is the strong revival of FIIs.When compared to year 2011-12, when net FIIs stood at a 3- year low, 2012 has seen much better inflows which have been largely positive towards the end of the year.
In 2012, net FIIs have returned to 2010 levels.
This has not only influenced stock pricesand the general sentiments positively but also impacted the interest rates and exchange rates positively
The growth in FIIs can be attributed to quantitative easing in the US With conditions improving in Euro Zone, the outlook for India has also improved. Before Now That doesn’t mean India is on a fast track to 8% growth levels
Fiscal Deficit andInflation seen as majorworry in medium term thatis going to hinder thegrowth. So till 2015, India’s GDP growth is going to hang around projected Asian average of 7-7.5% only.
The End Submitted byVishakha Pithwal 141 MBA Ad 2011-13