Submitted by: Submitted by ahkhemka
Views: 209
Words: 640
Pages: 3
Category: Business and Industry
Date Submitted: 10/25/2012 02:52 AM
Macroeconomic Overview
India – “Continues to be the Core of Activities”
On growth, our view is of cautious optimism due to
global and domestic economic factors
2,000
9.3%
8.4%
6.7%
6.5%
500
0
FY07
FY08
Agriculture
FY09
Industry
FY10
FY11
Services
FY12#
GDP Growth
5.3%
2.5%
4.0%
7.9%
8.0%
7.6%
3.0%
5.3%
4.6%
6.0%
4.3%
8.0%
6.3%
9.7%
12.0%
7.0%
Growth of key sectors for Copper
10.0%
Speedy implementation of big‐ticket economic
reforms such as –
• National Manufacturing Policy,
• National Electronics Policy,
• Land Acquisition Bill and
• GST
8.4%
12%
10%
8%
6%
4%
2%
0%
1,000
• Challenge is to balance growth and
manage inflation
• Structural reforms and policy intervention
by government will help
9.6%
1,500
USD Bn
• Growth has been impacted by prolonged
global slowdown, low consumer demand
and slow investment by government in
infrastructure
2.0%
0.0%
FY09
Manufacturing
FY10
FY11
Electricity and Gas Supply
FY12#
Construction
GDP Growth
GDP Growth and Sectoral Contribution
Slowdown in investment amid uncertain market
conditions
• Current GFCF growth rate still better than
that of FY09 (economic slowdown)
• Decline in GCFC in past few quarters is on
account of ‐
Gross Fixed Capital Formation (GFCF)
40
16.2
• Overhang from slowdown in Europe
15
35
10
7.5
3.5
30
6.8
5.2
36
34
34
33
32
5
34
• Major companies have put expansion plans
on hold and are adopting a wait and watch
policy for economic condition to improve
13.8
33
• High and stubborn inflation which has led to
hardening of interest rates and slump in
investment
20
16.2
• High energy prices
• Slow pace of policy reforms at home
Y-o-Y
growth %
% Share to
GDP
FY06
FY07
FY08
FY09
FY10
FY11
FY12
25
0
Source: CSO
% share to GDP...