Economics

Economy Outlook 2010-11

The economic journey in 2009-10 and the year ahead

Dun & Bradstreet

Preface The Economic Journey: 2009-10 India’s Economic Outlook: 2010-11 Sectoral Outlook 2010-11 Economic Growth Drivers Appendix

Economy Outlook 2010-11

Preface

A year after what many define as global economy's worst crisis of confidence, there seems to be growing evidence that the various strategies put in place to tide over the economic crisis are paying off. The first signs of positive growth are in evidence in many advanced economies. Global production and trade have bounced back while financial markets have recovered faster than expected. There has been a discernable improvement in economic and financial conditions in India. Industrial production is rebounding, consumers who held back on spending out of fear of job loss have begun to spend more freely as they see job creation begin to take hold. Improvement in global demand is generating a robust rebound in exports while the financial markets are in better shape as evidenced by the continued rally in equities. The collective impact of monetary and fiscal policies, as well as targeted structural measures has been crucial in containing the effects of the global economic downturn on domestic economic activity. The business landscape has changed significantly in the past one year. The difficult economic scenario compelled companies to re-look at the manner in which they co n d u c t e d t h e i r b u s i n e s s e s . Co m p a n i e s t h at demonstrated cost leadership without losing sight of the needs of the customers have emerged as true leaders in an economy that has turned extremely price sensitive. New business models have emerged, as companies took the path of innovation to stay tuned to customer needs and remain competitive. The crisis has reinforced the importance of good risk management practices. With companies carrying over the lessons of the past year into 2010, the expectation is that it will...