The Indian economy, for long, had been in a limbo. While many had termed the Indian economy as a sleeping giant, many others had doubted the country’s capability as an emerging economic power. The reasons were myriad. The economy of India was mired in poverty and various other problems that were detrimental to its growth.
For years, the economic growth of India was much subdued. Most of the big companies of the country were owned by the government. This was mostly because of the fact that the country was ruled by the Congress government for most of the years following independence in 1947. Congress was a party that was known for its socialist tilt. As a result it preferred the state to wrest control over most of the manufacturing and production companies. These companies were known as public sector undertakings (PSUs) and usually a bureaucrat was appointed at the helm of all affairs.
All that changed dramatically in 1991 when the economy of India was thrown open to foreign investors and entrepreneurs. This marked the entry of multi-national companies, popularly known as MNCs in the Indian economy. It was the Congress government that ushered in the change, in a marked deviation from its largely socialist policy.
Today, India is one of the four emerging economies of the world, the other three being China, Russia and Brazil. The GDP of the Indian economy is poised to beat all expectations and predictions for 2013. Experts are of the opinion that the economy of India would exceed all expectations in the next year. There are signs that the policymakers of the Indian economy are about to spring some surprises.
The economy of India is still one of the most intricate of the four emerging economies. The country’s demographics lend it the possibility to garner the best GDP growth rate. The experts, at the same time, have cautioned about the country’s inability or reluctance to introduce effective policy changes. This has remained a persistent source of disappointment. But the experts are upbeat about the prospects of the economy of India. The capital markets are something to be really excited about, they have remarked.
Studies by several research groups on Indian economy have revealed that inflation is already showing a downward trend and is expected to reduce in the fourth quarter of the current fiscal i.e. January-March, 2013. As the government announces the mid-quarter policy for the economy later in December, 2012, the growth-inflation trajectory would be factored in and the monetary policy would be calibrated accordingly.
The GDP of the economy of India was 5.5 per cent in April-June quarter of the 2012-12 fiscal as against 6.7 per cent during the July-September in the 2011-12 fiscal. But that’s expected to be bettered in the next quarter, experts have predicted.