1. 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

2. 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%

3. So do we have any reasons to
believe that it will grow
faster in 2013-15?

4. 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.

5. In 2012, net FIIs have returned to 2010 levels.

6. This has not only influenced stock prices
and the general sentiments positively but
also impacted the interest rates and
exchange rates positively

7. 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

8. Fiscal Deficit and
Inflation seen as major
worry in medium term that
is going to hinder the
growth.
So till 2015, India’s GDP
growth is going to hang
around projected Asian
average of 7-7.5% only.

9. The
End
Submitted by
Vishakha Pithwal
141
MBA Ad
2011-13