Indian economy to grow by 8 per cent by 2010: World Bank

Indian economy may growth faster than China according the recent projection by the World Bank. The apex financial institution of the world, World bank projects Indian economy will grow by 8 per cent by 2010. However, the bank projected seven per cent growth rate for China, according to media reports.

It is clear that the Indian economy is recovering from the clutches of the world economic crisis. The stock market has been getting best response from both domestic and foreign investors. The stable government after the general election, was the major factor that led the stock market in positive note.

The Index of Industrial Production(IIP) was in negative rate last year, now it over come from the negative growth rate. It is the impact of the bailout packages that the government had declared to check the impact of the global financial crisis on Indian economy and industrial sector.

The projection by the World Bank will help the stock market to check the foreign sentiments in the trade. By 2010, the economy would be in it full strength and attract huge capital inflow. The capital generation was the biggest challenge for major economies during the financial crisis. But Indian economy will recover from the impact of the global economic crisis as World Bank's projects states.

PC sales rise by 7 per cent in the first quarter

India is one of the biggest market in the world for Personal Computer (PC) and its peripheral sales. The sale of PCs is increase by 7 per cent in the first three months of the year or in the first quarter of the year. This is a good indication for the Indian PC market.

According to IDC report, HP captured 18.2% of the India PC market in terms of unit shipments in the January-March period. In this period, 16.70 lakh units of desktop and laptops were sold in India.

The first quarter sales results were quite satisfactory for the companies producing desktops and laptops in India. The high sales in the first quarter indicates the performance of the companies and the economy is recovering from the clutches of the economic slowdown.

The market is slowly gearing up despite the impact of the global slowdown in India. And it is expected that the markets will grow rapid in the next quarter. Whereas, experts believe that by the end of this year the impact of the global slowdown will weaken and the companies would back on track again.

Textile sector may get proper attention in the Bugdet

There is impact of the global slowdown and major economies of the world have been feeling the heat. The impact of the global slowdown is high on Indian economy and its sectors including textile. The demand for Indian textile products are decreased due to the economic crisis in the foreign countries. As a result the export of textile product from India is affected.

The government will bring the full budget and may give proper attention to boost the textile sector. Under this the government many declare many measures that would help the textile sector in India. Experts believe that the lowering interesting rates by the banks would boost the textile exports in India.

The textile export covers around 12 per cent of the total export from India. But due to the global slowdown, it fell to around 2 per cent. US and Europe are the major markets for India textiles facing the global economic crisis. The government may come up with more and more policies and allocations in the budget to help the textile industry and to boost the textile export.

Industrial Production rises, economy recovering from slowdown

After two months of continues slope in the industrial production is rising. A rise in the industrial product was recorded in the month of April 2009. The manufacturing sector however set a marginal growth but the overall Industrial production index was in growth.

In October 2008, the Index of Industrial Production (IIP) was in negative figures and many experts had predicted that this quarter the IIP might not recover from the negative slope, as there is impact of the economic crisis.

The IIP was at 0.72 per cent in February 09 and rose to 0.75 in the March 09. But the IIP set a growth of 1.42 per cent in April 2009. As per the statistics in April 2009, the mining sector set a growth of 3.8 per cent and manufacturing sector set growth of 0.7 per cent. The IIP growth rate was not expected.

It indicates that the economy is recovering from the impact of the global slowdown. It can the impact of the stimulus packages approved by the government of India and Reserve Bank of India. The Indian economy will recover from the impact of the global slowdown very soon, lets hope for the best.

Montek becomes the Depty Chief of Planning Commission

The UPA government at the centre has restructured the Planning Commission and Motek Sigh Ahluwalia will continue as the Deputy Chairman, according to media reports. The other members - Narendra Jadhav, honorary vice-chancellor of Pune University and Mihir Shah, Secretary of Samaj Pragati Sahayog will also be joining the Planning Commission.

The UPA government has also retained other key members of the Planning Commission, however the Primer Minister Manmohan Singh will be the Chairman. The UPA Government has set 100 days agenda and would try to achieve the set goals. It would be interesting to see that budget policy by the Finance Minister Pranab Mukherjee, whether the budget will be for aam admi - the common men or will try to protect the industries from the impact of the global slowdown.

India's forex reserves touches to $262.306 billion

Indian economy has been recovering from the clutches of the global slowdown as the India’s forex reserves rose by $1.667 billion for the week ended May 29. The total forex reserves of India touched to the tune of $262.306 billion.

There has been fluctuation in the forex reserves of India due the global slowdown. Experts believe that the appreciation and depreciation of the US dollar will have impact on the forex reserves of India. India’s gold reserves went up to $9.604 billion for the week ended May 29, while it was at $9.231 billion in the previous week.

Finance Minister meets exporters

The Finance Minister Pranab Mukherjee met the exports of India on Tuesday. The impact of the global slowdown is high on the export sector in India. The exporters of India have many expectations from the budget.

Exporter believe that there will be boom again in the sector and the economy will recover from the global slowdown. The meeting was attended by heads of eight export promotion councils (EPCs) and the Federation of Indian Export Organisations (FIEO).

The members put their demands in the meeting. It can be expected that there may be any special allocation in the union budget to protect the interest of the exporters.

FM likely to start pre-budget consultation next week

Election are over, UPA formed the government and the cabinet expansion went a s well. Now it is the time for the UPA government to back to business. The Finance Minister Pranab Mukherjee will present the Union Budget 2009-10 in the Parliament in the month of July.

The Finance Minister is likely to start the pre-budget consultation with industry body and leaders by next week. The industrialists will have high expectations from the budget as they are going through a tough time of global slowdown.

This time the government might have allocation for industries in the forthcoming budget. The Finance Minister had presented the interim budget 2009-10 in the month of February. And in the full budget 2009-10 the finance minister may keep many options open of the industries. The major concern for would be to check fiscal deficit in the budget.