It has been a historic year for the Indian Economy. From a period of low growth, high inflation and shrinking production, the NDA Government has not only strengthened our macro-economic fundamentals, but has also propelled the economy to a higher growth trajectory. India’s GDP Growth rocketed to 7.4%, which is the fastest among all the large economies of the world. Various rating agencies and think tanks have predicted that India’s growth would accelerate sharply in the next few years under the NDA Government. Banking on the strong fundamentals & reforms being undertaken by the NDA Government, Moody’s upgraded India’s rating from ‘stable’ to ‘positive’ recently.
When BRICS was launched, a lot of people felt that the “I” (India) does not belong to the league and India was seen with skepticism. Now, it is India which is perceived to be powering the BRICS as its growth engine.
With the Government’s thrust on manufacturing, Index of Industrial Production grew at 2.1% this year after the negative growth last year. Inflation (WPI) has seen a steady decline, from 5.55% in April 2014 to -2.65% in April 2015. FDI Inflows are increasing at a historic pace. The FDI Equity Inflows shot up by 40% to reach Rs 1,75,886 crore from Rs 1,25,960 last year. The Fiscal Deficit is in a state of steady decline. India’s current account deficit reduced from 4.7% of GDP last year to 1.7% of GDP this year. India’s Foreign Exchange Reserves have increased significantly, from $ 311.8 Billion to $ 352.1 Billion. This will provide insulation to India in the event of any global shocks.