Still Economical growth Is Slow and Below Average

Good monsoon cultivation and export growth boosted by demand from international markets . The superior performance of these two sectors in the second quarter, the rate of economic growth has not been able to carry up to five per cent . Of the current financial year 2013-14 Jul. - Sep. quarter gross domestic product ( GDP) growth rate of between four and half per cent is expected to go live .


The government on Friday will release second quarter GDP figures . Most research agencies believe that the 4.5 per cent GDP growth in the near term may be limited . Meanwhile, the agricultural sector growth is likely to remain above three per cent . Economic growth was 4.4 percent in the first quarter .
During this period, industrial production is at its worst . The pace of industrial production in the period of three months has not risen above 2.6 per cent . The three -month average growth rate of the industrial sector is expected to be around 1.73 per cent . The service sector has not achieved the desired speed . Therefore, the second quarter GDP growth rate is expected to be below five per cent .
The Government provided several measures have been taken to speed up the economy , but did not have any concrete result . High interest rates and inflation, investment climate in the country has not yet . Yet the government is assuming that economic growth in the third and fourth quarter changes may appear in the data . Good yields from good monsoon has increased the demand in the rural market . The result will look at manufacturing .
Contrary to expectations , analysts believe that the government's full-year economic growth rate of five per cent will not touch . Ikra 4.8 and 4.6 per cent by the financial agency Crisil growth forecasts . Other agencies also the country's growth rate is expected to go up by five per cent .

Debilitate the economy

Treasure tight condition - still struggling to fit the hands of government management of the economy is running out . Three months later crashed again is producing factories . In contrast, retail prices of onion and tomato prices have risen , has taken a nine -month high . Economic situation has raised the hackles of the Reserve Bank .
The poor performance of basic industries and factories sharp decline in production in October index of industrial production ( IIP) has decreased by 1.8 per cent . Factories in the same month last year, an increase of 8.4 per cent .

Mining and manufacturing performance is affected by the performance of factories . 75 per cent of the industrial production index in the manufacturing sector . The seven- month period from April to October , industrial production grew by 0.3 per cent decline . Among consumer durable industry production declined by 12 per cent .
Retail prices of products is proving a headache for the government . In November, onions , tomatoes skyrocketing prices of fruits and vegetables including retail inflation rate has reached nine -month highs of 11.24 per cent . This month, 61 per cent increase recorded in the prices of vegetables , while fruit prices have jumped 15 per cent .
The latest statistics on industrial production and retail inflation, the central bank has created confusion . Industrial production slows down the pace of reduction in interest rates, demand from industry shake. In contrast, higher retail inflation rate rises by the Reserve Bank to prevent it . Although there are signs that values ​​are knowledgeable , they have great concern for inflation, RBI . RBI 's mid-quarter monetary policy review on December 18 . The last two reviews to tame inflation , the central bank has hiked the repo rate . Raghuram Rajan said on Wednesday the central bank RBI Governor of the economy in light of the latest figures take a decision on interest rates .

Economy To Improve Next Year

The slow pace of the economy and inflation kept harassing the managers of the economy throughout the year . Now the whole industry in the new year after the new government is expected to good news . The country's economic growth rate has shaken the entire year . The government and central bank decisions on reforms [ RBI ] was hoping for relief . However , rising inflation, the central bank did not have much chance to do something like that battling over 2013 .
Every cry to the government in 2013 to Rs . The Indian currency fell victim of historic and current account deficit [ CAD ] grows up . Time, the government became scarred and green . Economic growth in the last financial year 2012-13 had touched a low of five per cent . Survey of the Ministry of Finance in February estimated growth rate during the current financial year 2013-14 will reach between 6.1 to 6.7 per cent . The official dream was broken very soon . April-September growth during the second quarter fell to 4.6 per cent . The key areas to relieve the government of the indicators are not . Basic industries and export performance remained at a low level . Finance Minister P Chidambaram and RBI Governor strive to Raghuram Rajan , but did not touch them with little success .
The International Monetary Fund [ IMF ] and the World Bank reports the growth rate has been projected to remain below five per cent . IMF recently said that India's growth rate in 2013 will be around 3.75 per cent , which in 2014 will reach around five per cent . Asian Development Bank [ ADB ], also projected a growth rate of 4.7 per cent was reduced from six . Well , now it will improve ADB says that in 2014 it will reach close to six per cent . Prime Minister's Economic Advisory Council also reduced from 6.4 per cent to 5.3 .
After failing economic growth on the front of the manager are constantly attempting to pause inflation . Thanks to the spurt in prices of food commodities to the common man and the government struggled upset . The government continued to everybody that inflation will be lower console but did not happen . Retail inflation based on the consumer price index in December stood at 11.24 per cent . The onion had touched Rs 100 mark . Congress-led government in the ongoing assembly elections in four states and the consequences suffered as a loss .
Rising rupee and the growing concern of the government in 2013 also remained CAD . The U.S. Federal Reserve bond purchases announced in June that he gradually would reduce . Therefore, the market of the world , including India, have become a huge crash . Rupee against the dollar to Rs 68.85 per dollar in August fell to a historic low . The BSE Sensex fell drastically . After all steps of RBI and Government of India currency is now around Rs 62 per dollar , while the index remains above 21 thousand . The difference between imports and exports CAD gross domestic product [ GDP ] was a 4.8 per cent . Government to reduce the import of gold and tries to bring investors in India . Foreign direct investment [ FDI ] laws were reformed in many sectors . These steps did not yield in 2013 . But in 2014 that brought many foreign companies have invested in India . These Tesco , Etihad , Singapore Airlines and Air Asia as the name.