In last 10 years India GDP grew at a compounded annual growth rate of around 7% with growth rate as high as 9.5% in FY 2006 and 9.3% in more recent year 2011 to as low as 4% in 2003 to 5% in the latest year 2013.
Global headwinds coupled with domestically high inflation and investment slowdown led to one of the lowest growth rate in financial year 2013. In spite of recent slowdown, Indian economy has surpassed Japan to become third largest economy in the world and is expected to grow at 6% in FY-2014.
GDP growth 2003 - 2013
|
|
Year
|
GDP growth
Rate(%)
|
2002-03
|
4
|
2003-04
|
8.1
|
2004-05
|
7
|
2005-06
|
9.5
|
2006-07
|
9.6
|
2007-08
|
9.3
|
2008-09
|
6.7
|
2009-10
|
8.6
|
2010-11
|
9.3
|
2011-12
|
6.2
|
2012-13
|
5
|
Source: Ministry of Finance and PIB
|
|
GDP growth of 5% seems to be like a bottom though its too early to say. From 9% and 6.2% in the past two years to 5% currently looks like a downward cycle. We saw 4% growth in 2002-03 and after that the economic growth has been good, and later on the stock market also became buoyant and grew year on year to reach 21 k levels in early 2008, and later followed by global crisis and correction.
ReplyDeleteSo the current 5% growth looks like a case where the economy can see a turning point and probably the seeds of growth may start sprouting in the years to come.