India's Q2 GDP growth above estimates at 8.9%

[Lala_Peace]

Achieving a high growth rate hasnt been a problem for us. Permeating the effects of the growth to all levels of society is what we should be aiming for.

I think Govt. has shown direction in these areas through its increased social sector spending over the last 6/7 yrs. They need to make those systems leak proof. That will definitely reduce gap.

 

[Nalwa]

I think Govt. has shown direction in these areas through its increased social sector spending over the last 6/7 yrs. They need to make those systems leak proof. That will definitely reduce gap.

Exactly. Steps like NREGA are good but leakages in the system need to be plugged.

 

[Hindustani]

Well done India!

Double Digits here we come!

 

[KS]

I think it's certainly possible for India to achieve double-digit growth in 2011.

I have never once doubted the dormant strength of Asia as a whole. History shows what can happen when Asia is at its rightful place in the world.

When the Sun rises in the East , the West has to live in the darkness.

 

[TechLahore]

When the Sun rises in the East , the West has to live in the darkness.

Poetic! Can you elaborate?

 

[KS]

Poetic! Can you elaborate?

No yaar it is just playing on the day to day occurence -- When its day here,its night in the West.

With Sun rising (economically& militarily Asia growing) the West has to live in darkness (influence of the west gets diminished).

 

[GORKHALI]

@tec lahore ! !you cant expect happiness and Prosperity everwhere..

 

[GORKHALI]

No yaar it is just playing on the day to day occurence -- When its day here,its night in the West.

With Sun rising (economically& militarily Asia growing) the West has to live in darkness (influence of the west gets diminished).

i know what you mean hehehe..

 

[Nair saab]

The results are good....thanx to good monsoon we expect a further decrease in inflation...infrastructure is the only reason why india didnt achieve double digit growth yet...hope government concentrates on infra & power...they should also allot lots of money in education field the sarva siksha abhiyan(eduction to all scheme)...

 

[Jade]

Why?

To achieve double digit growth, India has to grow at a rate of at least 10%. The first two quarter growth rates are 8.8% and 8.9%, so India has to grow by at least 11.15% for the next two quarters, which seems improbable

 

[BS_Buster]

To achieve double digit growth, India has to grow at a rate of at least 10%. The first two quarter growth rates are 8.8% and 8.9%, so India has to grow by at least 11.15% for the next two quarters, which seems improbable

It depends on the GDP out come of every quarter. The upcoming two quarter will see the highest GDP growth in a year like every year because of no flood, hurricane etc.

 

[JayAtl]

the only reason India is not doing much better is because of the security concerns for foreign investors. a foreign investor is more likely to invest in china knowing that none of its neighbors are going to initiate any wars and china's economic growth and zeal to be a super power/ #1 economic power in the world, shall keep them from attacking anyone and destabilizing their future growth.

That's why India must be vested in stabilizing Pakistan and improving ties, specifically economic ties. Yes, I know this is going to be very hard_ given the cultural and historic barriers. But do you see any way out? - if you want Pakistan to enjoy these kind of economic booms and want India to continue to be looked at for foreign investment and sustain its growth- we must bring shared prosperity to both nations.

We must help Pakistan also taste these success because it's in our interest to have stability in this region.

As sting once said during the cold war" Russians love their children too". And if we want our kids in India and Pakistan to have the best opportunities and we care about their future- then we must make peace and change attitudes of those against it- to be a minority in both countries.

 

[Abhishek_]

Fiscal deficit down 33.76 p.c. at Rs 1.62 lakh cr

The Centre’s fiscal deficit narrowed by 33.76 per cent year-on-year to Rs 1.62 lakh crore in April-October, 2010, on the back of better-than-expected revenue from the sale of spectrum and robust tax collections.

In comparison, the Centre’s fiscal deficit stood at Rs 2.45 lakh crore in the corresponding period of the previous financial year.

The government collected Rs 2.71 lakh crore in taxes during the seven-month period, which was 50.9 per cent of the Budget target for the entire fiscal. In comparison, tax collections during the same period last fiscal only amounted to 45.1 per cent of the whole-year target.

Non-tax revenue in April-October, 2010, stood at Rs 1.48 lakh crore, higher than the Budget estimate for the entire fiscal, primarily because of higher realisation from the auction of spectrum, which raked in approximately Rs 70,000 crore more than the government estimated.

However, expenditure also rose by 15 per cent during the period to Rs 6.17 lakh crore from over Rs 5.36 lakh crore in the year-ago period.

At Rs 1.62 lakh crore, the fiscal deficit in April-October, 2010, amounted to 42.6 per cent of the Budget estimate of Rs 3.81 lakh crore for the entire 2010-11, according to data released by the Controller General of Accounts.

This time last year, the fiscal deficit was 61.1 per cent of the Budget estimate for the entire 2009-10 financial year.

Fiscal deficit targets went awry after the government provided a stimulus to the economy in the aftermath of the global financial crisis that broke out in 2008. Among the measures, the government slashed taxes and stepped up public expenditure to spur growth of the economy. However, this also led to widening of the fiscal deficit.

As a result, the fiscal deficit doubled to over 6 per cent in 2008-09, as against the maximum permissible limit of 3 per cent stipulated by the Fiscal Responsibility and Budget Management Act. The deficit rose further to over 6.5 per cent last fiscal.

After the government partially rolled back the stimulus by raising excise duty, the Budget estimates pegged the fiscal deficit at 5.5 per cent of GDP.

However, despite higher realisation from the sale of spectrum for high-speed telephony and broadband services, the government expects the fiscal deficit to be contained at the same level as its Budget estimates or marginally lower.

“I feel that fiscal deficit target that we have set for ourselves of 5.5 per cent, I expect that target to be met and maybe for us to do a little better than that. So we are on track on our fiscal policy,” Chief Economic Advisor Kaushik Basu told reporters.

This is because the government has also stepped expenditure. In the first supplementary demand for grants, it got parliamentary sanction for spending an additional Rs 54,000 crore over the Budget estimate.

It had also sought separate approval for additional expenditure of another Rs 20,000 crore, which would drain out all the extra money garnered from the spectrum auction.

http://www.thehindu.com/business/Economy/article924079.ece

 

[Dash]

the only reason India is not doing much better is because of the security concerns for foreign investors. a foreign investor is more likely to invest in china knowing that none of its neighbors are going to initiate any wars and china's economic growth and zeal to be a super power/ #1 economic power in the world, shall keep them from attacking anyone and destabilizing their future growth.

The underlined part is not true. Since when security has stopped foreign investors from investing in India. what of the outsourcing then. We need to open our markets more and we are working on it. FDI is increasing in India and increasing dramatically. let me tell you a small state like Orissa has a commited as of July 2006, total planned investment in the state is $90 billion. Out of which 40-50 billions are FDI fiscal which comes in terms of industrialization. China opened its markets way back and even though we are late we are catching up soon.

From wiki -
http://en.wikipedia.org/wiki/Orissa

Infrastructure development
Although Paradip is home to Odisha's only large port, the coastal towns of Dhamra and Gopalpur are also undergoing major port development. The government of India has selected the coastal region of Odisha, stretching from Paradip in the north to Gopalpur in the south, to be developed into one of five or six Special Economic Regions (SERs) of the country. The government of India and the state government of Odisha are working together to erect world-class infrastructure in this region to match that of Rotterdam, Houston, and Pudong. This is aimed at further private investment in petrochemicals, steel, and manufacturing. A recent Morgan Stanley report forecasts that Odisha would be flooded with massive investments for manufacturing related activities in the same manner that Bangalore had attracted software investment in the 1990s. The scale of the investments in Odisha would, however, be much higher. As of July 2006, total planned investment in the state is $90 billion. This includes investment in research, education, hospitals, roads, ports, airports, and hotels. There are many multi-state irrigation projects in development, including the Godavari River Basin Irrigation Projects.

and GDP is not only driven by FDI. there are other things as well. Any economy experts????....shade some light here.

That's why India must be vested in stabilizing Pakistan and improving ties, specifically economic ties. Yes, I know this is going to be very hard_ given the cultural and historic barriers. But do you see any way out? - if you want Pakistan to enjoy these kind of economic booms and want India to continue to be looked at for foreign investment and sustain its growth- we must bring shared prosperity to both nations.

That is not happening in at least next 25-30 years, regardless we want it or not. However we need to discover areas where FDIs are a possible thing, like infrastructure and it will happen. Increasing trade with China, which is happening.

As sting once said during the cold war" Russians love their children too". And if we want our kids in India and Pakistan to have the best opportunities and we care about their future- then we must make peace and change attitudes of those against it- to be a minority in both countries.

Good thaught, but not a practical one.

 

[Chinese-Dragon]

and GDP is not only driven by FDI. there are other things as well. Any economy experts????....shade some light here.

GDP is composed of "consumption", government spending, trade balance and investment.

Consumption is the big one... and for exporters like China, the trade balance forms a sizeable chunk too (36%).

FDI in comparison is not as important, but it's still a good thing to have.