Blog
Unit 4 Macro: Indian Economic Growth is Slowing
Geoff Riley
1st December 2012
The rate of growth in the Indian economy seems to be slowing down and poses challenges for a government that needs a good rate of growth to support development and further progress in cutting extreme poverty. Asia's third largest economy has seen a reduction in the annual growth of real GDP. The country's growth rate came in at 5.3% during the third quarter of 2012.
According to this Guardian news article:
"Analysts say India needs to take more steps quickly, including speeding up approval for infrastructure projects, overhauling the tax system and reducing its swollen deficit to revive capital investment."
Growth has been hit too by persistently high rates of consumer price inflation which has caused business costs to rise and squeezed real incomes for many millions of India's emerging middle class.
Even sales and production of the iconic auto-rickshaw have stagnated over the last year as costs of components and labour have continued to rise
India intervenes to limit gold imports
India must revive investment (IMF Report)
Under-employment in India (May 2013, The Economist)
Indian economy still in the slow lane (BBC news, May 2013) - click here
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.