India’s slower economic growth
The GDP Gross Domestic Product rose only 5.0 % (6.2 % 2012) in the fiscal year ending March 31, or the lowest rate in a decade. Before the worldwide financial crisis India enjoyed growth rates above 9.0 %
During January to March 2012 output was 4.8 % as against the previous quarter (4.7 %). The government narrowed the fiscal deficit to 4.9 % of GDPP in the last fiscal year but still away from the set target of 3.0 % and there are rumours that India’s sovereign debt could be soon downgraded to non-investment grade status. As we all know, India’s government has so far failed to accelerate economic growth by making the needed investments in infrastructure, however measures are taken to lower expensive state subsidies on fuel, raising taxes to curb gold imports. These two areas are the main driver of India’s record high trade deficit. Experts are voicing the opinion that the government should allow greater foreign investment in some other sectors, including local pension fund management companies and insurance firms. In any case the economic growth is not sufficient to create enough new jobs necessary to accommodate young people entering the work market.
The newest data show further that manufacturing output slowed to 1.0 % (2.7 %) in the last fiscal year. Growth in services such as hotels and transport slowed to 8.6 % (11.7 %) and farm output growth slowed to 1.9 % (3.6 %). In the last quarter the industrial output grew 2.6 % and farming 1.4 %. The volume of investments increased 3.5 % (4.5 %). It has to be noted that the central bank decreased the leading interest rate by 0.75 % since 2013, however the business community considers this as to be not sufficient.
The latest available trade figures and India’s ten major trade countries can be had from the tables below.
India
Top 10 Export Partners in 2012
US Dollars, Millions
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | |
| United States | 11363.89 | 12839.27 | 16475.21 | 18515.46 | 20285.37 | 20851.50 | 18280.02 | 23611.47 | 33359.49 | 37486.00 |
| United Arab Emirates | 4676.05 | 6605.00 | 8280.81 | 11172.07 | 14728.22 | 21847.56 | 20666.70 | 29507.38 | 38772.97 | 36488.88 |
| China, P.R.: Mainland | 2710.18 | 4178.48 | 6473.30 | 7910.25 | 10195.07 | 9663.86 | 10154.95 | 17518.98 | 19113.15 | 14859.28 |
| Singapore | 1949.02 | 3377.84 | 5069.12 | 5908.02 | 7042.89 | 7997.11 | 6721.49 | 9093.86 | 16147.32 | 14683.37 |
| China, P.R.: Hong Kong | 3099.69 | 3553.95 | 4276.45 | 4628.26 | 5899.06 | 6572.55 | 6938.38 | 9518.15 | 12643.10 | 12144.02 |
| Netherlands | 1228.81 | 1460.82 | 2257.30 | 2621.34 | 4586.72 | 6016.29 | 6407.17 | 6578.59 | 9733.99 | 10025.04 |
| Saudi Arabia | 1077.66 | 1308.14 | 1710.34 | 2393.57 | 3426.91 | 4667.57 | 3730.49 | 4499.91 | 5645.56 | 8615.00 |
| United Kingdom | 2892.29 | 3414.68 | 4714.85 | 5478.64 | 6428.42 | 6620.63 | 6182.83 | 6421.50 | 8788.65 | 8261.98 |
| Germany | 2435.08 | 2619.21 | 3396.15 | 3881.19 | 4832.18 | 6037.02 | 5451.10 | 5997.47 | 8247.68 | 7162.91 |
| Japan | 1747.97 | 1910.52 | 2392.92 | 2767.34 | 3606.01 | 3214.07 | 3186.04 | 4812.81 | 5663.55 | 6741.50 |
| Source: Direction of Trade Statistics (DOTS) | ||||||||||
| Data extracted from IMF Data Warehouse on: 6/2/2013 3:46:46 AM | ||||||||||
Top 10 Import Partners in 2012
US Dollars, Millions
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | |
| China, P.R.: Mainland | 3737.92 | 6073.29 | 9925.53 | 15812.51 | 24691.96 | 30275.99 | 28839.64 | 41332.61 | 55299.34 | 53983.98 |
| United Arab Emirates | 1784.12 | 3951.43 | 4425.83 | 7581.68 | 12267.26 | 18821.19 | 15417.90 | 30976.81 | 35656.71 | 37778.64 |
| Saudi Arabia | 679.50 | 1130.10 | 1549.54 | 10446.01 | 17896.82 | 19470.01 | 14602.80 | 20406.52 | 28321.09 | 32859.11 |
| Switzerland | 3067.09 | 5191.62 | 6402.56 | 8482.03 | 9655.23 | 11043.54 | 10222.32 | 22292.20 | 31567.73 | 28909.33 |
| United States | 4890.38 | 5981.21 | 8848.42 | 11172.88 | 18708.40 | 18888.48 | 16643.61 | 19135.63 | 23454.08 | 24201.35 |
| Iraq | 0.11 | 0.86 | 1.82 | 4145.04 | 6503.38 | 7298.05 | 5841.25 | 7301.44 | 17525.06 | 19295.32 |
| Kuwait | 151.74 | 255.75 | 422.88 | 4609.58 | 7265.44 | 8966.88 | 7534.97 | 9031.75 | 14647.28 | 17846.59 |
| Qatar | 168.56 | 525.95 | 844.43 | 1776.65 | 2359.24 | 3206.00 | 4106.87 | 6155.80 | 11282.84 | 16204.86 |
| Germany | 2790.05 | 3630.87 | 5521.56 | 7165.65 | 9288.84 | 11238.13 | 10721.63 | 11471.57 | 15274.87 | 14965.93 |
| Nigeria | 76.26 | 55.02 | 66.45 | 5288.32 | 7468.80 | 8425.96 | 5674.82 | 10297.60 | 13750.21 | 14043.13 |
| Source: Direction of Trade Statistics (DOTS) | ||||||||||
| Data extracted from IMF Data Warehouse on: 6/2/2013 3:46:46 AM | ||||||||||