India GDP Expands Beyond Predictions

By admin • June 1st, 2010

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The economy in India expanded at a rate of 7.4% in 2009-2010, an impressive rate given the government estimated growth to be at 7.2%.

One of the major contributions of this growth was the impressive display of the manufacturing sector. The manufacturing sector witnessed its fastest growth rates for two years in the March quarter at 16.3%, mainly from new orders and new employment.

The agriculture sector also grew 0.2% better than expected in 2009-2010. Experts were predicting a slow year for agriculture as this period saw one of the worst droughts for almost 30 years. Floods in some areas later on in the year did boost agriculture, but the impressive growth is a testament to the workers in agriculture and their ability to produce crops when conditions do not favour them.

In addition the mining and quarrying sector expanded at a rate of 10.6% in 2009-2010 up from 1.6% in 2008-2009. Construction also grew at the expected rates of 6.5%. These sectors did decline during the global crisis, but these growth rates has shown that the economy has recovered strongly and is back on track.

Foreign investors have already started to take advantage of India’s impressive growth rates. In Hexxcom’s previous article; Foreign Investors Continue to Pour Money into India we highlighted the attractiveness of the economy to foreign investors.

With growth rates now performing at their expected levels and exceeding levels in some sectors, the Indian economy is looking promising for 2010-2011.

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