India's Economy booming?

India’s economy has been on a rise for many years. The increase in the economy has many effects on every aspect of the society. The article, “India's Economy Grows Most Since 2007, Adding Pressure on Rates,” (http://www.bloomberg.com/news/2010-08-31/india-s-economy-expands-8-8-fastest-since-2007-adding-pressure-on-rates.html) highlights several economic issues in India. The economic growth in the past few years has created problems and has increased the pressure on the Central Bank of India to aggressively monitory-policy tightening in Asia. The interest rates have been increased to ease inflation.

The salaries in India are increasing, “Salaries in India may grow an average 10.6 percent in 2010, the fastest pace in the Asia-Pacific, after increasing 6.6 percent in the previous year, according to the Lincolnshire, Illinois-based human resources adviser, Hewitt Associates Inc.” This has led to an increase in the consumer spending. This is a concern for many as the world economy is still experiencing recession or the effects of recession. The data shows “inflation continues to pose a risk to the Indian economy,” said Mridul Saggar, an economist at Kotak Securities Ltd. in Mumbai. “In the face of increasing global uncertainties, India is relatively shielded due to its strong domestic demand.”

This article also discusses rural demands; the big companies in India are expanding in the rural areas and are investing huge sums of money. It also discusses the global stimulus being provided to support economy in Japan, USA and other countries. Rahul Bajoria, an economist at Barclays Plc in Singapore, said “India needs to heed what happens globally as a prolonged slowdown will cut exports and impact the GDP to that extent.” He also said, “There is no need for concern right now as India is least plugged-in of all the emerging Asian countries” into the world economy. He expects the Reserve Bank of India will raise rates by a quarter-point on Sept. 16 and will have to raise the rates in the months to come.

I also wanted to share a you-tube video titled, “Warning: India Never Sleeps,” by IT Convergence (itconvergence.com/India) that highlights the accomplishments of all the sectors in India: http://www.youtube.com/watch?v=dlDRTeOhgng