“INDIA” The next global leading economy
Not by much the economic and financial newspapers were talking about India’s biggest problem: the electricity. This has been for long time a key issue for Indian’s economy. Nowadays, newspapers are talking about the miracle of Indian’s economy. The economic growth for the past year was 7.5 % against China’s 7.3 %.
For the next year the government expects Indian’s economy to grow at least 8.1 % and may be 8.5 %.
However, Indian’s economy remains five times lower than his neighbor. The government needs to make further efforts and reforms to reach China’s development. Economists of the world didn’t expect India to grow so fast last year and the reason is, because they didn’t know that New Delhi was going to change the method how they calculate the national GDP. Not only the economists didn’t noticed that growth was higher, but also the people were pretty sure that the economy was slowing down. That’s why they voted against the government in the last elections.
Statistics aside, we know for sure that there is some good news for India’s economy. The electricity lack has been exceeded for the moment, the oil price drop helped very much consumer’s power purchasing and the stability of the currency has allowed the central bank to lower the interest rates.
For long time economists have forecasted that India will be the next leading economy once that China’s growth slows down. In fact these economists had to wait for long, to see India becoming a super power. In this moment when many investors are worried about Japan, Europe and China’s economy, the rebirth of India could only be good news for world’s economy.