The Indian economy would grow to USD 1.72 trillion in 2011-12, moving closer towards the USD 2 trillion mark, according to an assessment by the Prime Minister's Economic Advisory Council (PMEAC).
The country's gross domestic product (GDP) at the market and current prices was measured at USD 1.31 trillion in 2009-10 and is estimated to be USD 1.52 trillion in the current fiscal, the PMEAC said in its latest economic outlook.
Pegging the GDP growth at nine per cent, the economy would reach a level of USD 1.72 trillion in 2011-12, it said.
If the nine per cent growth trend is maintained, India would become USD two trillion economy in 2013-14 fiscal.
In the assessment, the PMEAC, headed by noted economist C Rangarajan, said that it is imperative for India "to preserve conditions that will enable it to return to the 9 per cent growth trajectory".
After slowing down to 6.7 per cent in 2008-09 and 7.4 per cent in 2009-10, the Indian economy is projected to expand at 8.5 per cent this fiscal and by nine per cent in 2011-12.
According to experts, services and manufacturing sectors will remain the key drivers pushing the coveted growth to USD two trillion mark.
"Services sectors particularly transportation and telecom sectors will lead the growth. Rising income levels and aspirations of people will further the industrial output," CRISIL's chief economist D K Joshi said.
In the first two months of current fiscal, the industrial production recorded an annual growth of 14 per cent. "The lead indicators of service sector also suggest increased economic activity," Reserve Bank Governor D Subbarao said in the first quarter credit policy review.
If the tax reforms are implemented as planned from next fiscal, the economy would get further push.
Our view: What does all these informations mean for an Investor:
(1) From US $ 1 Trillion in 2009 to US $ 2 trillion is simply amazing.
(2) Investors should say thanks to the recent market corrections. They provide the last chance to make investments and enjoy the India growth story.
(3) Apart from your business and profession, it makes lots of sense to stay invested now.
(4) As we have been advocating in the past, the next 3-4 years would see the fastest growth in the Indian economy. Any investments in equities would be worth the risk.
Original link: http://economictimes.indiatimes.com/news/economy/indicators/Indian-economy-moving-fast-towards-2-trillion-mark-/articleshow/6243285.cms
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