Posts Tagged ‘ India ’

Budget 2014 – Containing Fiscal Deficit

Wednesday, July 9th, 2014

invest in india

India is the 10th largest economy on the planet and one of the fastest growing economies. However, it
has a public debt-to-GDP ratio of 49.6%. The interest burden is quite high and can be seen every year in
the budget. But overall, India is currently in a better position than most countries in the world. It has a
new government which is supported by an overwhelming majority of people nation-wide. Following are
some economic indicators which tell us the current economic condition of India:

• Inflation at 8.28% (as per CPI)
• Rising unemployment
• Downtrend in savings as a % of GDP due to negative real returns on savings
• Inelastic demand for imports (oil and gold)
• Rising factor costs due to inflation
• Expected growth at around 5-5.9%
• 10 year Govt. bond yield 8.71%
• High interest rates and therefore, high costs of capital

Read the full report Budget 2014-15