Tuesday, March 3, 2009

GDP to go down to 3%

The much discussed GDP and its value has shocked a million of them leaving the values rock-bottomed to a value 20% below the speculated and the fight is not yet over(it may be the beginning).

The Financial last Quarter GDP seem to take a toll of misery with a strange value of 5.3%.

According to the reports

"Based on bull-bear case outlook for G7 (club of developed countries), we see bull scenario growth for India at 5 per cent in 2009 and 7.4 per cent in 2010 and bear case at 3 per cent in 2009 and 4.5 per cent in 2010".

Being a possible G7 entrant India has to keep its pace and reduce the Fiscal Deficit hampering the overall effect of positive Monetary Benefits to the Economy.

With the inflation bottomed at a 4 year low the pressure would now be on the upcoming government to take steps in order to reduce Fiscal deficit and cope up to the standards of G7 countries.

It is been speculated that India to surpass US by 2050, but for now the main concern is to stabilize the internal working of the economy.

However the average projected GDP for year 2009 will be 4.3% with a 25% increment in the next financial year.

The third quarter growth (October-December 2008) rate has been estimated at 5.3%, down from 8.9% posted during the corresponding period last year.

Adding to the misery is the Stringent Industrial Development with a record of 16-year low of 2% this may further increase burden of loans leading to further pressure on GDP.