7 Things You Need To Know About India's Economy In 2018
By SiliconIndia
India is a fascinating country both in culture and development.While the economy is still developing, there are many visible changes that can be seen every year in this country. If you are an investor who has sights on this country, you can be sure of good returns if you make your investment in the right areas. The country is the second-most populous in the world and its technological and health sectors have been growing tremendously. Here are the 7 key things you need to know about India's economy in 2018.
1. The Industrial sector is on an upward growth
Recent data from the country's Index of Industrial Production shows that the sector is growing rapidly. The growth has been recorded as up to 7% on average for much of 2018. This represents a great trend for a country that is aiming at getting more income from industrial exports. India mostly relies on other sectors as the industries are barely developed. Investors who might be interested in the country could, therefore, look at some of the available opportunities in the production sector.
2. The economy's accounts deficit is healthy
The economy of India has been doing fairly in the financial sector as well. As of 2018, financial statistics have shown that the current account deficit is less than 1% of the GDP. There are indeed many indicators of an economy on a positive growth trend and one of the key indicators is the current account. India has been implementing a raft of measures to contain the levels of borrowing in the country. The interest rates have also been healthy for a few years now.
3. The economy is one of the fastest growing in the world
With over 7% annual GDP growth, India was recorded by the World Bank as one of the fastest growing economies in 2017. In fact, the country was in the top five fastest-growing economies that year. In 2018, the trend has not waned as the economy is still performing greatly. Projections have shown that the strong trend will continue well into the coming year as well. Many factors have been behind this growth. Much of the growth has been reflected across the various sectors and not any specific sectors.
4. The unemployment rate is still high
Even though most indicators have shown that the economy is performing well, there is still a huge deficiency in jobs. The country grapples with a huge population that requires a high rate of job creation every year. Analysts have often cited that up to 10 million jobs are demanded every year in India. If the population continues to grow faster than the economy, then this situation will get even messier in the near future.
5. The financial market is growing
Another sector that has experienced a huge growth is the financial sector. The stock market recorded nearly 30% growth in 2017 according to data from the Sensex index of India. In comparison to European financial markets, the Indian market is still in its infancy years. The prospects, however, look pretty great if the performance levels that have been experienced in recent years will be maintained.
6. Inflation rates have decreased in 2018
The data from India's Consumer Price Index has recently shown that the performance in the prices of goods has been fair. The data from March particularly shows that a slight decrease in the CPI has been recorded. Before March, the inflation rate was recorded as 4.44% but this came down to 4.28%. The general trend appears to show that the level that will be released soon for the preceding months will also be encouraging.
7. Infrastructure sectors have experienced growth
Finally, the main infrastructural sectors have also experienced unabated growth. Sectors like the cement industry have particularly recorded a strong growth which has been the anchor for the other infrastructural sectors. In total, the infrastructural sectors recorded a growth of over 4% over the last year according to data from the national agencies.
The Indian economy is definitely interesting for analysts all over the world. India is a country with a great potential which has some impressive statistics. The country is attractive to investors from around the world who would like to venture into developing markets. As of 2018, the data from this economy shows some optimistic trends.
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