Economy Watch: April 2010
India
may figure amongst the top 3 economies by 2030, according to Union
Minister of Commerce and Industry, Mr Anand Sharma. Further, industrial
growth is likely to be higher and inflation likely to be lower than in
the previous month, thereby raising expectations for an upward trend in
the Indian economy.
An encouraging indicator has been the release of the 73rd Business Outlook Survey of the Confederation of Indian Industry (CII), according to which, the country’s Business Confidence Index (BCI) for April-September 2010-11 rose by 1.5 points to 67.6.
Industrial output is also expected to rise 15% in March 2010, Commerce and Industry Minister Mr Anand Sharma said, marking the fourth consecutive month of strong growth. The core sector comprising the six infrastructure industries had logged a strong 7.2% growth in March 2010, according to analysts. These sectors have a 26.7% weight in the index for industrial production (IIP) and are considered a good advance indicator of factory output growth. The RBI also raised its policy rates by 25 basis points and also the cash reserve ratio or the money that banks have to park with the central bank by a similar amount in its April monetary policy review.
India attracted foreign direct investment of US$ 1.21 billion in March 2010, while foreign exchange reserves as on 30th April, 2010, stood at US$ 279.63 billion, up by US$ 157 million over the previous week. The reserves have risen for the third consecutive week. India’s manufacturing sector has witnessed a strong revival in 2009-10 registering impressive growth across sectors, revealed the comprehensive CII m-ASCON survey for the period April-March 2009-10 covering more than 100 sectors.
The Union Budget for 2010-11 was cleared with Parliament passing the Finance Bill after amendments to provide marginal direct and indirect tax concessions to sectors such as healthcare and construction especially housing projects, aviation industries etc.
An encouraging indicator has been the release of the 73rd Business Outlook Survey of the Confederation of Indian Industry (CII), according to which, the country’s Business Confidence Index (BCI) for April-September 2010-11 rose by 1.5 points to 67.6.
Industrial output is also expected to rise 15% in March 2010, Commerce and Industry Minister Mr Anand Sharma said, marking the fourth consecutive month of strong growth. The core sector comprising the six infrastructure industries had logged a strong 7.2% growth in March 2010, according to analysts. These sectors have a 26.7% weight in the index for industrial production (IIP) and are considered a good advance indicator of factory output growth. The RBI also raised its policy rates by 25 basis points and also the cash reserve ratio or the money that banks have to park with the central bank by a similar amount in its April monetary policy review.
India attracted foreign direct investment of US$ 1.21 billion in March 2010, while foreign exchange reserves as on 30th April, 2010, stood at US$ 279.63 billion, up by US$ 157 million over the previous week. The reserves have risen for the third consecutive week. India’s manufacturing sector has witnessed a strong revival in 2009-10 registering impressive growth across sectors, revealed the comprehensive CII m-ASCON survey for the period April-March 2009-10 covering more than 100 sectors.
The Union Budget for 2010-11 was cleared with Parliament passing the Finance Bill after amendments to provide marginal direct and indirect tax concessions to sectors such as healthcare and construction especially housing projects, aviation industries etc.
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