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Indian Economy Expands At Fastest Pace In Nearly Three Years

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http://www.telegraph.co.uk/finance/economics/7972521/Indian-economy-expands-at-fastest-pace-in-nearly-three-years.html

The 8.8pc expansion in gross domestic product (GDP) compares with a median forecast of an annual rise of 8.7pc in a Reuters' poll and an 8.6pc expansion in the previous quarter.

The data underscores continued growth momentum in Asia's third-largest economy amid growing uncertainty over global recovery and may allow the Reserve Bank of India (RBI) to focus more on containing near double-digit inflation.

India's central bank has raised interest rates four times since mid-March to stamp down inflationary pressures and has said it may have to give precedence to containing inflation over other policy objectives.

It is widely expected to raise rates by another 50 basis points by end-2010, and some bond dealers expect a 25-basis points hike in key rates as early as in its September 16 policy review.

India's 10 year benchmark bond yield fell 2 basis points to 7.95pc after the data. It had closed at 7.99pc in the previous session.

The country's domestic-demand driven economy is benefiting from a buoyant consumer demand that is pushing up car sales and making factories produce to their optimum capacity.

Annual car sales in India rose 38pc in July.

Manufacturing grew 12.4pc, compared with 3.8pc in second quarter last year.

Its farm sector expanded 2.8pc and is expected to see robust growth on good monsoon rains, which is likely to further boost consumer demand by lifting rural income.

The economy is expected to grow 8.5pc in the current fiscal year to end-March 2011, after expanding an annual 7.4pc in the previous year.

India is booming... Lucky inflation is under control. I'm sure there's no correlation between inflation and growth figures.

I'm sure all this growth is helping the poor in India.

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I saw the news, a bit confused myself putting aside all those out of control population & poverty issues,

double digit inflation!

but growth is 8.6%

so its not really growing is it?

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so its not really growing is it?

Exactly.

Not to mention that a large chunk of that "growth" is the result of inward investment through out-sourcing as the economies of the West seek to cut costs and with inflation so high this investment income is likely to evaporate very quickly. I meet a lot of Indian businessmen who are absolutely brimming with positive dreams for the future of the Indian economy; they simply cannot see any dangers at all. Its this blind optimism with threatens India more than anything OMHO.

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Its this blind optimism with threatens India more than anything OMHO.

Who would have thought that a country with open sewers and corpses floating in rivers wouldnt have much of a vision for the future?

Edited by Johnny Storm

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More like power stations lots and lots of them.

List of Upcoming Thermal Plants in India

http://thermalpower.industry-focus.net/index.php/industry-overview/342-list-of-upcoming-thermal-plants-in-india.html

Maybe they will need call centers for them, we can open them here in Glasgow and Newcastle, then when they call they wont be able to understand the person they are talking to and wont get any help :lol::lol::lol::lol:

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Exactly.

Not to mention that a large chunk of that "growth" is the result of inward investment through out-sourcing as the economies of the West seek to cut costs and with inflation so high this investment income is likely to evaporate very quickly. I meet a lot of Indian businessmen who are absolutely brimming with positive dreams for the future of the Indian economy; they simply cannot see any dangers at all. Its this blind optimism with threatens India more than anything OMHO.

Sounds like the Irish economy 10 years ago. Everyone moved there with expectations of low costs and high education, then when it all goes t*ts up, they flood out, leaving behind a ghost economy.

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Sounds like the Irish economy 10 years ago. Everyone moved there with expectations of low costs and high education, then when it all goes t*ts up, they flood out, leaving behind a ghost economy.

I'm sure it's different this time...

I mean they will have learned the lessons of the Irish experience... :ph34r:

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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