India Economic Outlook 2014

UNIDOW FIS' Intelligence and Research team publishes India Economic Outlook and constantly track its economic policies to deliver "insights" to our readers. This comprehensive information on the Indian Economy along with certain policy coverage will give you a perspective of India's political outlook, economic policies, currency outlook and overall economic outlook. For feedback and to purchase complete paperback report, contact Sales Team at we@unidow.com.

 

 

India's Economic Outlook 2014

 

Last moderated on: Monday, Oct 20, 2014

 

 

Political Outlook: (Positive) Stable government formed in the 16th Lok Sabha (lower house of the parliament) not only ensure the support and stability in providing good governance. It will provide the fundamental solution to fix the weaknesses in the structure of democracy. We analyzed the situation of India political outlook which indicate the positive development in coming days.

 

 

 

Currency Outlook: (Negative) The Unidow Research & Analytic maintains a negative outlook on the national currency. Upcoming elections to the house of people and uncertainty related to the next government at the center will push the investment down in the country and eventually raising the demand for the US Dollar. Although, this outlook to be followed till first half of CY2014 and projections will be changed post elections results. There will be a positive outlook for the Indian currency if the BJP led government formed at the center.

 

 

Economic Outlook: (Stable) In our recent economic evaluation, The UNIDOW FIS has maintained a stable outlook on the overall economic prospect of the country. The challenge of overspending will be curbed and we're anticipating firm growth and minimal risk of large fiscal deficit to GDP ratio. However, with limited space for rate cut, RBI is unlikely to ease its policy rates in every meet this year due to persistent inflation and volatile industrial  output and manufacturing prices threatening the inflation prospect. RBI is giving full attention to the inflation problem, which is undermining the fragile economic growth.


 

 

Details 2010 2011 2012 2013 2014
           
Real GDP Growth 9.6 6.9 4.4 5.7 5.5
Inflation 8.5 8 8.2 7 6.2
Consumer Price Index 10.4 8.4 10 7.7 6.6
Wholesale Price Index (WPI) 9.6 8.9 7.6 6.7 6.1
Short-term Interest Rate 6 8.1 7.9 6.6 6
Long-term Interest Rate 7.9 8.4 8.3 8 7.9
Fiscal Deficit (per cent of GDP) -6.9 -8.2 -8.5 -8.1 -7.5
Current Account Deficit (per cent of GDP) -2.7 -4.2 -3.2 -3.8 -3.6

 

All figures are in per cent, unless otherwise mentioned.

 

1.  *Percentage change in GDP Deflator from previous year.

2.  **Consumer Price Index (CPI) for Industrial Workers.

3.  ***All Commodities.

4.  ^Mumbai three months offer rate.

5.  ^^10 year government Bond.

 

Data Source: OECD, World Bank, Unidow Research & Analytic and IMF.

Ratings and Economic Outlook provided by Unidow Financial Intelligence.

 

Rating Guide:

 

Positive - This rating signifies that the outlook is and optimistic and favorable for the domestic as well as foreign investors.

Stable - This outlook tells us that the rating has been used on the basis of current unfavorable domestic and global situation and post-moderation with India's peer economies with mild negative factors.

On Review - Above two ratings are considered as positive. But "On Review" is somewhat a negative outlook. This rating signifies that Unidow is doubtful on the future outlook and consider it as risky/negative for the near-term.

Negative - This is an adverse rating for the country and can be use post critical review.

Risky - This is the last rating measure and Unidow has never used it in its economic outlook report so far. As the name tells, this too is an adverse rating and shows extremely unfavorable and risky outlook.

 

 

 

Sector's Growth of the Indian Economy

 

 

 

 

Indian GDP Over the past Decade

 

 

 

Indian GDP In Numbers For FY-2013

 

Agriculture, Forestry & Fishing 16,44,834
Mining and Quarrying 2,18,910
Manufacturing 12,79,966
Electricity, Gas & Water Supply 1,70,238
Construction 7,67,388
Trade, Hotel, Transport & Communication 24,09,965
Financing, Insurance, Real Estate & Bus Service 16,17,397
Community, Social & Personal Services 13,52,314
     
  Total GDP (in INR, Ten Million) 94,61,012

 

 

USD/INR