1. Economic Analysis of Indian Economy
Group members name:
Hardeep Sigh
Manmohan Singh
Mukanda Ji
01/11/13
Naresh Swami1
Nitin Ved

2. Top Down Analysis
 The top down method consists of:
 A macro economic analysis
 An industry analysis
 A company analysis
 The important reason for considering the economic environment
before taking an investment action, to understand the variability in
stock prices which is explained by the movement of the overall
market known as systematic risk.
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3. Macro Economic Analysis
 There is a strong linkage between growth in the overall economy
and growth in Industry earnings (which drive stock prices, at least in
the long run).
 After a promising start to the decade in 2010-11, with achievements
like maintaining GDP growth rate around 8 percent, bringing down
fiscal deficit to 4.8 percent of GDP as well as containing current
account deficit to 2.6%, the fiscal year 2011-12 has been
challenging for the Indian Economy.
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4. Cont….
 India is still growing at a rapid pace in comparison to other
countries; however that should not deter from the opportunity to
push through further reforms, create infrastructure and generate
economic opportunities.
 After achieving 8.4% growth in the past fiscal, India’s economy has
decelerated sharply to achieve 6.1% GDP growth in the third quarter
of 2011. It is worrying that growth is estimated to be less than 7%
for the fiscal year ending March 31.
 High fiscal deficit, lack of foreign investment, tax and
manufacturing reforms are some of the hindrances plaguing the
Indian economy.
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5. Cont…
 The Indian economy in 2011-12 has also seen moderation in growth.
 Quarterly Growth of Indian GDP (%) from 2008 to 2011-12.
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6. Sectorial Outlook
 After an impressive growth of 7 percent in 2010-11, the Agricultural
growth rate has declined to 3.2 percent during first nine months of
this year, perhaps also contributed by a high base effect.
 For the first time in 27 months, the industrial growth recorded a
negative growth of 5.1 percent in October 2011. Although it later
reverted back to 6 percent in November.
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7. Consumption and investment demand supports
growth during FY11. However, the investment demand
falls sharply during Q3 FY11.
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8. Quick glance at the year that was
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9. After a setback during FY10, agriculture sector
output rebounded strongly during FY11. While the
services sector remains resilient, industrial activity
consolidates.
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10. Fiscal Development and Public Finance
 Rapid fiscal consolidation was effected in 2010-11 with fiscal deficit
dropping to 4.8 per cent of gross domestic product (GDP) from 6.5
per cent of GDP in 2009-10.
 With a sharp deceleration in real GDP growth, particularly in the
industry sector and continued high levels of prices in key
commodities, a slippage is likely in the deficit target.
01/11/13 10

11. Fiscal Developments and PublicFinance
Trends in Deficits of Central Column1 Column2 Column3 Column4 Column5 Column6
Government
Revenue
Deficit as
percent of
Year Revenue Deficit Fiscal Deficit Primary Deficit Fiscal Deficit
( As per cent of GDP)
2003-04 3.6 4.5 0 80
2004-05 2.4 3.9 0 61.5384615
2005-06 2.5 4 0.4 62.5
2006-07 1.9 3.3 -0.2 57.5757576
2007-08 1.1 2.5 -0.9 44
2008-09 4.5 6 2.6 75
2009-10 5.2 6.5 3.2 80
2010-11 P 3.2 4.8 1.8 66.6666667
01/11/13 11
2011-12 BE 3.4 4.6 1.6 73.9130435

12. Cont….
 The macroeconomic situation at the time of formulation of Budget
2011-12 looked positive, even though there was some concern about
industrial slowdown.
 The persistence of inflationary pressures and consequent demand
slowdown had their impact on public finances with rising costs
impairing profit margins and thereby affecting levels of growth in
corporate income tax and central excise.
 With global commodity prices remaining high and given limited
flexibility in domestic price setting, there have been some
expenditure additional ties with implications for the levels of deficit
– both revenue and fiscal.
01/11/13 12

13. Cont….
 The higher outgo in terms of tax refunds, the lower levels of non-tax
revenues and the state of the equities market that was inappropriate
for achieving the planned disinvestment in the first nine months of
the current fiscal make it a challenge to reach the budgeted revenues
in the current fiscal.
 At the same time global crude oil prices (Indian basket) averaged
US $ 110.1/bbl in the first nine months, which was much higher
than what was assumed at the time of budget formulation.
 Together with the fact that headline inflation has been high even
with limited pass through of fuel prices, these have implications for
higher levels of subsidies.
 It is likely that deficit calculations may have to factor in additional
 expenditure.
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14. Balance of Payments
 As in 2008, the transmission of the crisis has been mainly through
the balance-of-payments (BoP) channel.
 Export growth has decelerated in the third quarter of fiscal 2011-12,
while imports have remained high, partly because of continued high
international oil prices.
 At the same time, foreign institutional investment flows have
declined, straining the capital account and the rupee exchange rate
that touched an all-time low of Rs. 54.23 per US dollar on 15
December 2011.
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15. Balance of Payments
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16. State of the Economy and Prospects
 The Indian economy is estimated to grow by 6.9 per cent in 2011-
12, after having grown at the rate of 8.4 per cent in each of the two
preceding years.
 This indicates a slowdown compared not just to the previous two
years but 2003 to 2011 (except 2008-9).
 The manufacturing sector grew by 2.7 per cent and 0.4 per cent in
the second and third quarters of 2011-12.
 Food inflation, in particular, has come down to around zero, with
most of the remaining WPI inflation being driven by non-food
manufacturing products.
 The slowing inflation reflects the lagged impact of actions taken by
the RBI and the government.
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17. State of the Economy and Prospects
Rate of Growth of GDP at Factor Cost at 2004-2005 Column
Prices (per cent) Column1 Column2 Column3 Column4 Column5 Column6 7
2009-10 2010-11 2011-12
2005-06 2006-07 2007-08 2008-09 PE QE AE
Agriculture, forestry & fishing 5.1 4.2 5.8 0.1 1 7 2.5
Mining & quarrying 1.3 7.5 3.7 2.1 6.3 5 -2.2
Manufacturing 10.1 14.3 10.3 4.3 9.7 7.6 3.9
Electricity, gas & water supply 7.1 9.3 8.3 4.6 6.3 3 8.3
Construction 12.8 10.3 10.8 5.3 7 8 4.8
Trade, hotels, transport & communication 12.1 11.7 10.7 7.6 10.3 11.1 11.2
Financing, insurance, real estate &
business services 12.6 14 12 12 9.4 10.4 9.1
Community, social & personal services 7.1 2.8 6.9 12.5 12 4.5 5.9
GDP at factor cost 9.5 9.6 9.3 6.7 8.4 8.4 6.9
Source : CSO (Central Statistics Office).
Notes: PE : Provisional Estimate, QE: Quick Estimate, AE: Advance
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Estimate.

18. Quarterly Growth Rate for first three quarters
(per cent)
Colu Quarterly Growth Rate for first three quarters Column
mn1 (per cent) Column2 Column3 Column4 Column5 Column6 7
2010-11 2011-12
Sector Q1 Q2 Q3 Q1 Q2 Q3
1Agriculture, forestry & fishing 3.1 4.9 11 3.9 3.2 2.7
Industry 8.3 5.7 7.6 5.1 3.2 2.6
2mining & quarrying 6.9 7.3 6.1 1.8 -2.9 -3.1
3Manfacturing 9.1 6.1 7.8 7.2 2.7 0.4
4Electricity, gas & water supply 2.9 0.3 3.8 7.9 9.8 9
5Construction 8.4 6 8.7 1.2 4.3 7.2
Service 10 9.1 7.7 10 9.3 8.9
6Trade, hotels, transport & communication 12.7 10.8 9.8 12.8 9.9 9.2
7Financing, insurance, real estate &
business services 10 10.4 11.2 9.1 10.5 9
8Community, social & personal services 4.4 4.5 -0.1 5.6 6.6 7.9
Total GDP at factor cost 8.5 7.6 8.3 7.7 6.9 6.1
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Source: CSO

19. Sectoral Composition of GDP
Sectoral Composition of GDP Column1 Column2 Column3
Year Agriculture Industry Services
1950-51 53.1 16.6 30.3
1960-61 48.7 20.5 30.8
1970-71 42.3 24 33.8
1980-81 36.1 25.9 38
1990-91 29.6 27.7 42.7
2000-01 22.3 27.3 50.4
2010-11QE 14.5 27.8 57.7
2011-12AE 13.9 27 59
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Source: Calculated from CSO data.

20. Services Sector
 The economy has successfully navigated the turbulent years of the
recent global economic crisis because of the vitality of this sector in
the domestic economy and its prominent role in India’s external
economic interactions.
 India’s performance in terms of this indicator is not only above that
of other emerging developing economies, but also very close to that
of the top developed countries.
 Among the top 12 countries with highest overall GDP in 2010, India
ranks 8 and 11 in overall GDP and services GDP respectively.
 In terms of compound annual growth rate (CAGR) for the period
2001-10, China at 11.3 per cent and India at 9.4 per cent show very
high services sector growth.
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21. Services GDP
 The share of services in India’s GDP at factor cost (at current prices)
increased from 33.5 per cent in 1950-1 to 55.1 per cent in 2010-11
and to 56.3 per cent in 2011-12 as per Advance Estimates (AE).
 With a 16.9 per cent share, trade, hotels, and restaurants as a group
is the largest contributor to GDP among the various services’
subsectors, followed by financing, insurance, real estate, and
business services with a 16.4 per cent share.
 Community, social, and personal services with a share of 14.3 per
cent is in third place.
 Construction is at fourth place with an 8.2 per cent share.
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22. Performance of India’s Services
Sector: Some Indicators
Column
1 Column2 Column3 Column4Period Column5Column6
Sector Indicators Unit 2008-09 2009-10 2010-11 2011-12
Aviation Airline passengers (domestic and international) Million 49.5 (a) 54.5 (a) 64.5 (a) 59.3 (a)
9265.3
Telecom Telecom connections (wireline and wireless) lakh 4297.25 6212.8 8463.2(b)
Tourism Foreign tourist arrivals Million 5.28 (a) 5.17 (a) 5.78 (a) 6.29 (a)
Foreign exchange earnings from tourist arrivals US $ million 1183211394(e) 14193 (e) 16564 (e)
Shipping Gross tonnage of Indian shipping Million GT 9.28 9.69 10.4511.06(d)
No. of ships Numbers 925 1003 10711122(d)
Ports Port traffic Million tonnes 530.53 561.09 570.03488.8 (c)
704.81
Railways Freight traffic by railways Million tonnes 833.31 887.99 832.75(b)
466968
Net tonne kilometres of railways Million 538226 584760 444515(b)
Storage Storage capacity Lakh MT 105.25 105.98 102.4799.81(b)
No. of warehouses Numbers 499 487 479469 (b)
Sources : Directorate General of Civil Aviation, Telecom Regulatory Authority of India,
Ministry of Tourism, Ministry of Shipping, Ministry of Railways and Central Warehousing
Corporation .
(compiled by
EXIM Bank of India).
Notes : GT is gross tonnage.
01/11/13
(a) calendar years, for example 2007-8 for 2007. (b) April - December. (c) April – January. 22
(d) As on 1 January, 2012. (e) Advance estimates by the Ministry
of Tourism

23. Industry
 Industrial growth in the country has, in terms of long run trend,
remained aligned with the growth rate of gross domestic product
(GDP).
 Employment in the industrial sector increased from 64.6 million
persons in 1999-2000 to 100.7 million persons in 2009-10 .
 The share of industry in total employment increased from 16.2 per
cent in 1999-2000 to 21.9 per cent in 2009-10 .
 However, the increase was largely on account of expansion of
employment opportunities in the construction sector, from 17.5
million in 1999-2000 to 44.2 million in 2009-10.
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24. Industry
01/11/13 24

25. Cont….
 The index of industrial production (IIP), released each month, is the
key indicator of industrial performance.
 Recent industrial growth, measured in terms of IIP, new IIP series
with 2004-5 as base was released in June 2011, Growth had reached
15.5 per cent in 2007-8 and the started decelerating.
 Initial deceleration in industrial growth was largely on account of
the global economic meltdown.
 There was, however, a recovery in industrial growth from 2.5 per
cent in 2008-9 to 5.3 per cent in 2009-10 and 8.2 per cent in 2010-
11.
01/11/13 25

26. Contribution to IIP Growth- April
December (per cent)
Column1 Column2 Column3 Column4 Column5 Column6
Weight 2008 2009 2010 2011
Mining 6.4 32.1 9.4 -8.3
Manufacturing 89.4 46.8 85.6 85.6
Electricity 4.2 21.2 5 22.6
Basic goods 16.2 64.8 27.8 65.7
Capital goods 52.2 -52.9 30.2 -12
Intermediates 3.7 24.1 13.6 -3.3
Consumer Goods 28 64 28.4 49.4
Durables 32.7 67.3 23 21.3
Non-durables -4.8 -3.3 5.5 28.1
Source:
Economic
Division,
Departme
nt of
Economic 01/11/13 26
Affiar

27. Employment in the Organized Sector
 Employment growth in the organized sector, public and private
combined, has increased by 1.9 per cent in 2010, which is lower
than the annual growth for the previous year.
 The annual growth rate for the private sector was much higher than
that for the public sector.
 However, in respect of both sectors, annual increase in employment
had slowed down in 2010 vis-à-vis 2009.
 The share of women in organized-sector employment was 20.4 per
cent in 2010 March end and has remained nearly constant in recent
years.
01/11/13 27

28. Overall Employment in Public and
Private Sectors
Colum Percentage change Percentage change
Sector Employment (in lakh) as on 31 March Column1 n2 2009/2008 2010/2009
2008 2009 2010
Public 176.74 177.95 178.62 0.684621478 0.376510256
Private 98.75 103.77 108.46 5.083544304 4.519610677
Total 275.48 281.72 287.08 2.265137215 1.902598325
(Wome
n) -55.12 -55.8 -58.59
Source : Annual Employment Review 2010 & 2009, Directorate General of
Employment and Training, Ministry of Labour and Employment.
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29. Performance of the Mahatma Gandhi NREGA (National
Overview) from 2006-07 to 2010-11
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30. Households provided employment
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31. Percentage share of women in total
person days generated
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32. Prices and Monetary Management
 Monetary policy remained focused on controlling inflation and
anchoring inflationary expectations, with 13 adjustments in policy
rates since March 2010, which has slowed growth.
 These effects, coupled with a favourable base effect in prices and
continued global slowdown.
 Expected to moderate inflation to around 6.5 to 7.0 per cent by
March 2012; inflation is expected to come down further during
2012-13.
01/11/13 32

33. Annual Average Inflation by Major
Heads in WPI
Column1 Column2 Column3 Column4 Column5 Column6 Column7 Column8 (Per cent)
2011-12
(Apr.-Jan.)
Commodities Weight 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (Apr.- Jan.) P
All commodities 100 4.47 6.59 4.74 8.05 3.8 9.55 9.11
Primary articles 20.12 4.3 9.62 8.33 11.05 12.66 18.41 9.91
Food articles 14.34 5.38 9.62 6.97 9.09 15.27 16.75 7.15
Non-food articles 4.26 -3.32 5.8 11.86 12.87 5.47 20.49 12.27
Minerals 1.52 15.15 18.64 11.84 22.08 8.79 26.74 24.15
Fuel & power 14.91 13.58 6.46 0.03 11.57 -2.11 12.24 13.67
Coal 2.09 17.6 0.09 3.38 24.3 3.43 5.07 13.26
Mineral oils 9.36 16.73 9.14 -0.9 12.35 -4.29 16.03 17.12
Electricity 3.45 2.57 2.66 0.84 0.19 0.96 5.74 1.17
Manufactured
products 64.97 2.42 5.66 4.78 6.16 2.22 5.46 7.58
Food products 9.97 1.19 5.29 3.54 8.69 13.49 4.26 7.35
Beverages, tobacco
& products 1.76 4.66 5.1 6.52 9.52 6.11 7.08 11.81
Textiles 7.33 -1.06 1.88 0.73 1.62 3.43 11.05 9.51
Wood & wood
products 0.59 5.74 5.84 6.69 9.49 9.6 4.03 8
Paper & paper
products 2.03 3.63 4.6 2.96 4.2 2.2 4.84 5.94
Leather & leather
products 0.84 4.25 7.95 3.06 5.47 4.93 -0.92 1.76
Rubber & plastic
products 2.99 1.91 5.61 4.28 4.53 0.74 5.98 6.82
Chemicals & their
products 12.02 3.79 4.96 3.57 4.64 -0.26 5 8.74
Non-metallic
mineral products 2.56 3.41 11.58 11.19 2.63 6.97 2.59 5.52
Basic metals, alloys
& products 10.75 2.23 9.28 10.29 11.96 -6.12 8.1 11.12
Machinery &
machine tools 8.93 3.58 6.31 3.65 2.89 0.46 2.73 3.11
Transport,
equipment/parts 5.21 2.69 2.22 2.47 5.36 3.08 2.96 3.54
01/11/13 33
Source : The Office of the Economic Adviser (OEA), Department of Industrial Policy and Promotion (DIPP).
Note : P : Provisional.

34. Cont…
 Inflation in primary articles has declined drastically, falling to 2.25
per cent by January 2012.
 Inflation in fuel has continued to remain high during the last two
years.
 Inflation in manufactured products had started to accelerate since
January 2011, remaining range-bound between 7 and 8 per cent in
2011, due to a surge in metal and chemical prices, but it has also
recently started to moderate.
01/11/13 34

35. Contribution to WPI inflation by major
groups (per cent)
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36. Financial Intermediation and Markets
 Financial markets in India have acquired greater depth and liquidity
over the years.
 Since the Indian financial system is bank dominated, banks’ ability
to withstand stress is critical to overall financial stability.
 The financial market infrastructure continues to function without
any major disruption.
 With further globalization, consolidation, deregulation, and
diversification of the financial system, the banking business may
become more complex and riskier. Issues like risk and liquidity
management and enhancing skill therefore assume greater
significance.
01/11/13 36

37. Movement of Select Monetary
Parameters
Column1 Column2 Column3 Column4 Column5 Column6 (per cent)
Parameters Growth rates as on 2 December 2011
Year-on-year
Yearly variation Financial-year basis basis
2009-10 2010-11 2010-11 2011-12 2010-11 2011-12
M0 17 19.1 6.4 0.7 22.3 12.8
M1 18.2 9.8 4 -0.5 17 5
M3 16.8 16 8.5 8.8 15.7 16.3
Source : RBI.
01/11/13 37

38. Deregulation of Interest Rate on
Savings Bank Deposits
 A major component of the financial sector reform process pursued
by India has been deregulation of a complex structure of deposit and
lending interest rates.
 Interest rates on Foreign Currency Non-Resident [FCNR(B)]
deposits continue to remain regulated by the RBI.
01/11/13 38

39. Movements in deposit and lending rates
Column1 Column2 Column3 Column4 Column5 (per cent)
Interest rates Dec.- 2010 Mar.- 2011 Jun. -2011 Sept.-2011 Dec.-2011
I. Domestic deposit rates
(i) Public Sector Banks
(a) Up to 1 year 1.00-8.25 1.00-9.75 1.00-9.15 1.00-9.55 1.00-9.55
(b) 1 - 3 years 7.00-8.50 8.00-9.75 8.25-9.75 8.55-9.75 8.55-9.75
(c) Above 3 years 7.00-8.75 7.75-9.75 8.00-9.50 8.00-9.50 8.00-9.50
(ii) Private Sector Banks
(a) Up to 1 year 2.50-8.50 2.50-9.30 2.50-9.30 3.00-9.40 3.00-9.25
(b) 1 - 3 years 7.25-9.00 7.75-10.10 8.00-10.50 8.00-10.50 8.00-10.50
(c) Above 3 years 7.00-9.25 7.00-10.00 8.00-10.00 8.00-10.00 8.00-10.10
(iii) Foreign banks
(a) Up to 1 year 1.25-8.00 2.30-9.00 2.50-9.25 3.00-10.00 3.50-10.00
(b) 1 - 3 years 3.50-8.50 3.50-9.10 3.50-10.00 3.50-9.75 3.50-9.75
(c) Above 3 years 3.50-8.50 3.50-9.10 3.50-9.50 4.25-9.50 4.25-9.50
II. Base Rate
(i) Public-sector banks 7.60-9.00 8.25-9.50 9.25-10.00 10.00-10.75 10.00-10.75
(ii) Private-sector Banks 7.00-9.00 8.25-10.00 8.50-10.50 9.70-11.00 10.00-11.25
(iii) Foreign Banks 5.50-9.00 6.25-9.50 6.25-9.50 6.25-10.75 6.25-10.75
III. BPLR
(i) Public-sector banks 12.00-14.00 13.00-14.50 13.50-15.00 14.25-15.75 14.25-15.75
(ii) Private-sector banks 13.00-18.00 13.50-19.25 13.75-19.75 13.75-20.50 14.75-21.00
(iii) Foreign banks 10.50-16.00 10.50-16.00 10.50-16.00 10.50-16.50 10.50-16.50
Source : RBI.
01/11/13 39
Note : BPLR is benchmark prime lending rate.

40. RURAL INFRASTRUCTURE DEVELOPMENT FUND
(RIDF)
 The annual allocation of funds under the RIDF has gradually
increased from ` 2,000 crore in 1995-96 (RIDF I) to ` 18,000 crore
in 2011-12 (RIDF XVII).
 Aggregate allocations have reached Rs. 1,34,000 crore.
 During 2011-12, ` 6,118 crore was disbursed to the states under the
RIDF up to end December 2011.
01/11/13 40

41. Disbursements under the RIDF(RURAL INFRASTRUCTURE
DEVELOPMENT FUND) during 2011-12
(As on 31
December 2011)
Column1 (Rs. crore) Column2 Column3
Region Disbursement Achievement
Target Achievement (%)
South 3200 1711 53.46875
West 2060 514 24.9514563
North 4510 2254 49.9778271
Central 1080 411 38.0555556
East 3540 1014 28.6440678
NER & Sikkim 610 214 35.0819672
TOTAL 15000 6118 40.7866667
Source : National Bank for Agriculture and Rural Development
01/11/13 41
(NABARD).

42. Measuring India’s Environmental
Performance
 In a recent ranking of environmental performance (EPI 2012), India
was placed 122 out of 132 countries. Its performance was better on
protecting its forests (rank 21) and fisheries (39), and on climate
change (55). But,
 Poorer ratings were given to air quality (132), agriculture (126), and
water resources (122).
 Although India ranks among top five countries in terms of GHG
emissions, its per capita emissions are much lower than those of the
developed countries.
01/11/13 42

43. The Euro zone and India:
 The eurozone, though distinct from the European Union (EU) is a
major subset of the EU.
 The eurozone and EU account for about 19 and 25 per cent
respectively of global GDP.
 The EU is a major trade partner for India accounting for about 20
per cent of India’s exports and is an important source of foreign
direct investment (FDI).
01/11/13 43

44. Cont…
 Nevertheless, India is projected to be the second-fastest-growing
major economy (7 per cent) after China (8.2 per cent) as per the
IMF.
 In the medium term, challenges for the global economy continue to
emanate from the way the eurozone crisis is addressed.
01/11/13 44

45. India and the Global Economy
Colu Colu Colu Colu Colu Colu Colu Colu Colu
mn1 Growth of the GDP (%) (Y-o-y) Column2 Column3 mn4 Column5 Column6 mn7 mn8 mn9 mn10 mn11 mn12 mn13
Germ Japa
Year World Advanced US EU UK Eurozone any n B R I*# C* S
2010 5.2 3.2 3 2 2.1 1.8 3.6 4.4 7.5 4 9.9 10.4 2.9
Q1 2.2 1 1.2 1 2.4 5 9.3 3 9.4 11.9 1.6
Q2 3.3 2.2 2.5 2.1 4.1 4.5 8.7 5.2 8.8 10.3 3
Q3 3.5 2.4 3 2.1 4 5.2 7 3.4 8.9 9.6 3.3
Q4 3.1 2.2 1.7 2 3.8 3.2 5.3 4.4 8.3 9.7 3.6
2011 3.8 1.6 1.8 1.6 0.9 1.5 3 -0.9 2.9 4.1 7.4 9.2 3.1
Q1 1.2 2.2 2.4 1.6 2.4 4.6 0.1 4.2 3.8 7.8 9.7 3.7
Q2 1.6 1.7 0.5 1.6 2.9 -1.7 3.3 3.5 7.7 9.5 3.3
Q3 1.5 1.4 0.4 1.3 2.6 -0.6 2.2 4.9 6.9 9.1 2.9
Q4 1.6 0.9 0.7 0.7 2 -1na na 6.1 8.9na
2012
(P) 3.3 1.8 -0.1 0.6 -0.5 0.3 1.7 3 3.3 7 8.2 2.5
Source : Organization for Economic Cooperation and
Development (OECD) Principal Global indicators and
IMF
WEO
.
01/11/13
Notes : P Projection from IMF World Economic outlook 45
January 2012 update.

46. Savings and Investment:
 One of the features of the ‘new normal’ in the world economy is the
way savings as well as investment rates are distributed between the
advanced and emerging economies.
 India’s investment rates, for example, have risen some 12
percentage points of GDP from the mid-1990s to around 35.1 per
cent in 2010-11.
01/11/13 46

47. Saving and investment rates – 2011
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48. THANK YOU
01/11/13 48