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Economy registering 9 per cent growth rate in FY’07
November 12, 2007: The Indian Economy is registering a nine per cent growth in this FY’07 on top of buoyant investments and domestic environment. As per the official estimates, the Indian Economy has registered a growth rate of 9.3 per cent during the first quarter of FY 2007.
India's growth is led by investment and domestic environment. The aggregate efficiency of both capital and labour and also the 35 per cent investment in proportion to the GDP ratio is the result for the 9 per cent growth.
Finance Minister, P. Chidambaram delivered the annual Lakshman Kadirgamar Lecture in Colombo after which he replied to some questions attributing to the high foreign exchange reserves of over 250 billion dollars to high capital inflows.
In the Indian Economy, the capital inflows are very large, which is the reason for a high foreign exchange reserves. Sound macro economic policies are to be followed anywhere in the world, which leads to high growths.
In the last four years, investment has been a prime driver of growth and domestic demand while consumption is second.
The investment of India to the GDP ratio is now little over 35 per cent.
Source: The Economic Times