Summary on India Country Report Essay Example | Topics and Well Written Essays - 1000 words

Summary on India Country Report - Essay Example The financial year for India is April to March, and during the first quarter of the current financial year (2007-08), real GDP growth was 9.3%, estimated growth rate for the full year being 8.4%. This is on the back of an average annual growth rate of 8.83% in the past four years since 2003 – 04. The above 8% GDP growth performance is not likely to be sustained in the coming two years, forecasts being still healthy at 7.9 % and 7.4% successively. The overall GDP is estimated to cross one trillion US dollars land mark during the current year itself, by a good margin. Sector-wise, industrial and services sectors continue to outperform while the agricultural sector growth will be anemic, as in the past few years. During 2006-07, industry and services sectors accounted for 27.9% and 54.6% of the GDP respectively, the balance 17.5% being for the primary sector in which more than 700 million people are engaged in India. Thus, the bleak outlook for the rural economy stares in the face of Trade in goods and services, with continued political support for liberalization, is showing good performance. Imports are rising due to strong domestic demand for industrial and consumer goods. However, exports which averaged 26.5% growth in the past three years are expected to slow down to 17.2% in the current year, the main culprit being the weakening of the US dollar vis-Ã  -vis the Rupee. Rupee appreciated by over 12.5% in the past 12 months and the export oriented segments of the economy like software services, textiles, leather goods etc are hit by the Rupee appreciation. Rising cost of increased imports and crude oil are balanced somewhat by the rising exports of services along with remittances from non-residents, thus keeping the current account deficit under control, estimated at less than 2% of the GDP for 2008-09. The policy laid emphasis on increased spending on primary