ECONOMY UPDATE!!

THERE MAY NOT BE BIG FALL IN INFLATION TILL MARCH

There may not be any further significant fall in inflation this fiscal, according to Chairman of Economic Advisory Council to the Prime Minister C Rangarajan.

Inflation remained above nine per cent for eight consecutive months from April to Nov 2011 with the break coming in December 2011 when it fell to 7.5 per cent and further to 6.5 per cent in January this year.

Inflation in food articles eased from 10.7 per cent in April 2011 to -0.52 per cent in January, while non-food manufacturing inflation even in January this year remained high at 6.7 per cent

GDP GROWTH SLOWS TO 6.1% IN DECEMBER QUARTER, WEAKEST IN ALMOST THREE YEARS

Country's economic growth slowed to its weakest annual pace in almost three years in the three months to December, as high interest rates and rising input costs constrained investment and manufacturing.

Gross domestic product rose 6.1 per cent in October to December compared with a year earlier, a lower than expected increase, figures from government data showed.

That marked a sharp pullback from 6.9 per cent growth in July to September and was the seventh successive quarterly slowdown, providing a gloomy backdrop for a central bank policy meeting and federal budget, both due in just over two weeks. 

INDIA WILL BE WORLD'S THIRD LARGEST ECONOMY BY 2030

 India will be  world's third largest economy by 2030 but its energy demand will slow down to 4.5 per cent, according to global energy giant BP plc

By 2030 China and India will be the world's largest and third largest economies and energy consumers, jointly accounting for about 35 per cent of global population, GDP and energy demand.

EXPORTS GROW 10.1% IN JAN TO $25.34 BILLION

India's exports grew by 10.1 per cent year-on-year in January to $25.34 billion despite weak demand in the Western markets, reversing a declining trend shown since the peak of July 2011.

However, the exports growth rate was a marginal increase over December 2011. The shipments had grown by 6.7 per cent year-on-year in December 2011.

Imports grew at a faster rate of 20.25 per cent to $40.1 billion, leaving a trade deficit of $14.76 billion, according to the commerce ministry data released in New Delhi.

INDIA'S UNEMPLOYMENT RATE FALLS TO 6.6%

Unemployment rate in the country has declined from 8.3 per cent in 2004-05 to 6.6 per cent in 2009-10 despite global slowdown because of the success of the employment policies.

"Despite global slowdown, India not only maintained its employment standards but also succeeded in reducing unemployment from 8.3 per cent in 2004-05 to 6.6 per cent in 2009-10",according to  Labour and Employment Minister Mallikarjun Kharge .

FOREIGN DIRECT INVESTMENT DOWN 33% IN DECEMBER TO $1.35 BILLION

 Foreign direct investment in India declined about 33 per cent to USD 1.35 billion (Rs 7,124 crore) in December 2011, over the same month in the previous year, an official said.

FDI inflows in December 2010 totaled USD 2.01 billion (Rs 9,094 crore).