Indian Economy Poised For Fast Development After Recession

Amid all indications of improvement in the Indian economy, the World Bank has also estimated that the country's economic growth rate, between financial years of 2010-11 and 2011-12, could be from 7.5 to 8-percent. The point to be noted is that the average growth rate of the economy between 1995 and 2005 had been 6.4-percent. From this viewpoint, the World Bank's estimate is also presenting a rosy picture of the country's economy on lines of other estimates and is confirming that India's economy has come out of recession and is well on the way of progress.

Improvement in Economies of High-Income Countries
There are strong possibilities of further development of the Indian economy. It would continue to get stronger with foreign demand. Improvement in the economies of high-income countries would also benefit the country's economy, because this would increase demand from these countries and the flow of foreign investment would increase, which would further strengthen the country's economy. The commendable thing here is that the country would achieve this even when the stimulus packages, given for recovering from the economic recession for the next year i.e. 2010-11 are withdrawn.

Impact of Global Recession
One more noteworthy thing would be that while the Indian economy surges ahead in the years 2010-11 and 2011-12, the pace of global economic growth would be quite slow. Continuous growth of our economy is confirmed by the export figures for December 2009. An increase of 9.3-percent was registered in exports in January. This is the second consecutive month registering growth in export. There had been a fantastic growth of 18.2 percent registered in exports in November 2009.
After falling continuously for 13 months, exports had registered increase for the first time in November 2009. The global recession had been the reason for continuous fall in exports, but with satisfactory growth registered for a second consecutive month, it is proved that our export sector is emerging from recession.

Export Growth
With improvement in industrial activity, there has been increased import of raw material for export trade. This means that exports are growing. There is hope of 10-percent growth in exports in the year 2010-11.
The export sector of the country would become stronger after price rise comes under control, as it would make our goods more competitive in the international market. There is hope that price rise would soon come under control with other measures being taken at the government level, along with increase in the Cash Reserve Ratio (CRR) by the Reserve Bank of India.