write a brief note on the present economic senario of the world
Answers
Answer:
Current Economic Scenario
Introduction
After a promising start to the decade in 2010-11 with achievement like GDP
growth of 8.4 per cent, bringing down fiscal deficit to 4.7 per cent from 6.4 of GDP in
2009-10, as well as containing current account deficit to 2.6 per cent from 2.8 per cent
in 2009-10. GDP growth decelerated sharply to a nine year low of 6.5 per cent during
2011-12.
The slow down was reflected in all sectors of the economy but the industrial
sector suffered the sharpest deceleration which decelerated to 2.9 per cent during
2011-12 from 8.2 per cent in 2010-11. The centre‟s finances for 2011-12 experienced
considerable slippage as key deficit indicators turned out to be much higher than
budgeted due to shortfall in tax revenues and overshooting of expenditure. The gross
fiscal deficit (GFD)-GDP ratio moved up to 5.8 per cent in 2011-12 compared to the
budgeted ratio of 4.6 per cent. The substantial increase in subsidies during 2011-12 on
account of high crude oil prices further impacted the deficit of the Government.
The year 2011-12, especially the second half, was characterised by a burgeoning
current account deficit (CAD), subdued equity inflows, depletion of foreign exchange
reserves, rising external debt and deteriorating international investment position1
.
Inflation remained elevated at over 9 per cent in the first eight months of 2011-12,
before softening moderately in December and remained sticky in the range of 6.9-7.7
per cent2
.
Economy in 2012-13
GDP Growth Profile: According to the first advance estimates of national income for
the year 2012-13 of the Central Statistics Office (CSO), the Indian economy is expected
to grow at its slowest pace in a decade at a mere 5 per cent in 2012-13, on the back of
dismal performance by the farm, manufacturing and services sectors, The estimate islower than the 6.2 per cent growth clocked in 2011-12 and is the lowest since 2002-03,
when the economy grew by 4 per cent only
According to the CSO‟s advance estimates, the growth in agriculture and allied
activities are likely to lowered to 1.8 per cent in 2012-13, compared to 3.6 per cent in
2011-12 and manufacturing growth is also expected to drop to 1.9 per cent in this fiscal,
from 2.7 per cent achieved during the last year. Services sector, including finance,
insurance, real estate and business services are likely to grow by 8.6 per cent during
this fiscal, against 11.7 per cent in the last fiscal. Meanwhile, mining and quarrying is
likely to be slightly better at 0.4 per cent, compared to a negative growth of 0.6 per cent
a year ago. Growth in construction is also likely to be 5.9 per cent in 2012-13, against
5.6 per cent last year3