Despite the high commodity prices, rising rupee and economy slowdown in US, India’s economic development would register another success story in this fiscal year too.
According to the UN Economic and Social Survey of Asia and the Pacific, Indian economy is likely to grow by 9.0 per cent in 2007 too. Earlier, the Indian economic growth rate was at 9.2 per cent in 2006.
The comparatively low oil prices, steps taking to control the rising inflation and less dependence on the country’s exports would help Indian economy to register another sound economic growth this year too.
UN Under Secretary General Kim Hak-Su presented the findings of the survey report and revealed that this year, growth in service sector and industrial production would be helpful to support the economic development and would work as the key growth drivers.
On the other hand, Kim also warned that the Indian economy is being slightly overheated. Further, India has no any surplus in Balance of Payments that helps generally in case of external shocks.
As far as rising inflation is concerned, the rate would come down to currently 6% to 5% this year because the oil prices are expected to come down to USD 60 per barrel as against USD 65 per barrel in 2006.
According to the report, the US slowdown and of Japan’s uncertainty of sustainability may result in a bad economic phase for other countries in Asia-Pacific region. At the same time, the report says that India would be remained isolated because the India’s economy does not depend so much on country’s exports.