ECONOMIC ISSUES

Indias market index till the year 2007 and 2008 showed a good ascend, tolling umajot p its place as the eleventh largest economy on the basis of GDP and the fourth major according to PPP. since the dawn of inflation the points have come crashing & the volatile international market adversely affected each individual country state, thus the Indian economy has also suffered a considerable decline. Factors are responsible for this economic slowdown While managing the balance of payments minute modification can hugely affect the assessment of Indias economic growth. Market for the high net worthy investors have been filtered and few potential entrepreneurs have survived though very skimerishly. The fluctuation in the stock market and the capital flow also hinder the economic up-rising.

INFLATION
The recent boutade of scams, fresh highs of corruption level and lack of policy reforms from the UPA government for faster economic growth has made a significant impact on India as an investment destination.

Indian stocks, hit by inflation and high interest rates, are Asia's worst performers this year-- down nearly 14 percent -- resulting in a decline in portfolio flows.
Annual Indian growth was about 9.5 percent. Then it fell to 6.8 percent during the global financial crisis but recovered to 8.5 UNAVOIDABLE RESULT Lower growth resulting as a result of the RBIs fight against inflation, which has featured 10 increases in interest rates since March 2010. Growth likely to be less than 8 % and will not pick up rapidly "especially with policy having to choose between price stability and growth.

 The government was hoping growth of 8.5% in GDP, which could remain as high -- but it cannot given the battle against Inflation. Even after 10 increases, India's real interest rates remain negative, meaning the inflation pace remains above rates. Industrial output has risen in single digits the past six months. Car sales, a barometer of consumer demand, have slowed. The manufacturing sector is going to see very subdued single digit growth. Continued interest rate hikes are going to hamper sustained high growth in consumer durables. Slowing manufacturing activity, rising input costs, tight liquidity, interest rate pressure and a government looking to tighten its fiscal belt don't make a very rosy outlook for the services sector

India GDP Growth Rate

 India's economy rose 7.8% in the three months ended March 31 from a year earlier after a revised 8.3% gain in the previous quarter. Manufacturing rose 5.5 % in the three months through March from a year earlier, compared with a 6 % gain in the previous quarter. Finance and insurance services grew 9 % after a 10.8 % jump in the previous quarter. The sectors which registered significant growth rates are agriculture, forestry and fishing at 7.5 %, electricity, gas and water supply at 7.8 %, construction at 8.2 percent, trade, hotels, transport and communication at 9.3 %, and financing, insurance, real estate and business services at 9.0 %.