India is expected to grow faster than expected. As per the Economic survey tabled in the Parliament, the Indian economy is slated to grow at a rate of 7.35% to 7.85%. The GDP numbers are well above the previous projections of 6.9% by the Central Statistics Office. The report also maintains a much higher projection of over 8.5% for the 2013-14 year.
The survey has also indicated that the jobs in the Indian industries were not severely affected during the slowdown seen in the economies of the other parts of the world. It also reported that IT and BPO sectors recorded the highest new jobs till September 2011. These sectors alone added an estimate of eight lakh jobs during this period.
The GDP number is a key indicator of the overall economy of a country. Growth in GDP is generally seen as a direct measure of the growth of the national economy.
The Economic Survey also feels that the fiscal consolidation be on track which would trigger for the rise in saving and capital formation. This aided with the measures by the RBI to reduce the policy rates at key intervals, would result in high investment activities, boosting the economy as a whole.
Meanwhile, the stock markets seem to have completely ignored the news of the faster growth trajectory. The indices declined during the later part of the trade.
The Nifty is down by 1.5% to trade at 5378.
Educomp solutions however managed to gain 4.5% in the trade.