India 2012: What's in Store?

India 2012: What's in Store?

By

Rahul Gosain
Student - PGP (2007-2009)
Specialization - Finance
Alliance Business School
Bangalore

As per data by Global Insight, prospects for India by 2012 will not be as accelerated as people have assumed them to be. India's industrial production growth is expected to decrease by 7.5% from current levels and imports will increase 2.4 times. On the bright side, exports will grow at a faster pace of 2.6% but the country will still run a trade deficit of US$106 billion.

What might come as a shock to most visionaries is that India's GDP in 2012 is expected to grow at 8.1% and NOT above the 9% mark. In fact the data shows that till 2012 India won't hit the 9% mark even for a single year.

But this is good news. The country has accelerated too much too soon since 1996 in terms of GDP growth. This indicates that India is looking towards a future that will be built on sustained growth and not steroids.

Rahul Gosain
Student - PGP (2007-2009)
Specialization - Finance
Alliance Business School
Bangalore

Source: E-mail August 13, 2008