Is Indian Economy on the road to recovery?

A decade is a long period to analyse the economy of a nation. India, UPA decade of 2004-14, economic reforms, compulsions of coalition politics and corruption allegations have buffeted the UPA government’s quest for growth. 

India’s economy has swung from a heady high to a crippling slow down. India’s gross domestic product (GDP) grew at an annual average of 7.6% during the period, including the two latest years which saw a crippling slow down – an enviable achievement particularly at a time when US and the EU were reeling in recession.

Despite the recent slowdown, India’s gross domestic product (GDP) – the total value of goods and services produced within the country’s boundaries; is within striking distance of crossing $2 trillion mark joining the elite group of globe’s richest economies. It shows Indian economy’s resilience.

How does India compare with world’s biggest economies? By most estimates, India is set to become the world’s fifth, if not the third largest economy over the next decade in terms of size measured by GDP (in dollar billion). 

But it has still some distance to cover to catch up with the big economies such as US and China – They stand as follows - USA: $16, 724bn, China: $8,939bn, Japan: $5,007bn, Germany: $3,593bn, France: $2,739bn, UK: $2,490bn, Brazil: $2,190bn and India; $1,778bn.

The rupee has tumbled from heady high to record low in the ten years. A weaker rupee makes all important goods and travelling abroad costlier.

But it gives the foreign tourists more money to spend here. A fall in rupee also partly explains the reason behind inflation. Rising income has led to a greater demand and sales of both consumer durables as well as food items. Higher demand has led to higher prices.

Few events capture the Indian economy’s growth as the rise of the Sensex which indicate the rise and growth of Indian industry.

In ten years, the benchmark equity index has yielded more than 300% returns. Billions of dollars that have flown in to the country symbolizes the world’s faith in India. Whatever the drawbacks or hurdles, it seems Indian economy is on the road to recovery.

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