Thursday, February 08, 2007
Booming India expects 9.2% growth
India's economy is expected to grow by 9.2% in the current financial year, according to the Indian government. The country's robust manufacturing and services sectors are forecast to drive growth at the fastest rate in 18 years. The country's stock market jumped to a record high above 14,570 points on the back of the latest figures for the 2006/07 period.
"This shows that growth is more sustainable this time around," said DK Joshi, a senior economist with rating agency Crisil. "It is backed by very high investment rate, as well as good consumption and export demand."
Read the full story at: http://news.bbc.co.uk/1/hi/business/6337433.stm
An increase in the investment rate pushes actual investment up, increasing the gap between actual investment and replacement investment. This increases the capital stock, which in turn increases output. Growth will only be sustained in the long run if the high investment rate can be sustained.
The much acclaimed new interactive learning package LiveEcon can help you understand the economics behind these important policy events. The effects of changes in the investment rate on economic growth are examined in chapters 8 and 17 (at principles and intermediate level, respectively). Find out how to get LiveEcon at www.liveecon.com Download this blog as a Blogcast via the website.
India's economy is expected to grow by 9.2% in the current financial year, according to the Indian government. The country's robust manufacturing and services sectors are forecast to drive growth at the fastest rate in 18 years. The country's stock market jumped to a record high above 14,570 points on the back of the latest figures for the 2006/07 period.
"This shows that growth is more sustainable this time around," said DK Joshi, a senior economist with rating agency Crisil. "It is backed by very high investment rate, as well as good consumption and export demand."
Read the full story at: http://news.bbc.co.uk/1/hi/business/6337433.stm
An increase in the investment rate pushes actual investment up, increasing the gap between actual investment and replacement investment. This increases the capital stock, which in turn increases output. Growth will only be sustained in the long run if the high investment rate can be sustained.
The much acclaimed new interactive learning package LiveEcon can help you understand the economics behind these important policy events. The effects of changes in the investment rate on economic growth are examined in chapters 8 and 17 (at principles and intermediate level, respectively). Find out how to get LiveEcon at www.liveecon.com Download this blog as a Blogcast via the website.
# posted by Sam @ 09:41 
