The Indian domestic currency is gaining strength and India’s Gross Domestic Product (GDP), for the first time, has crossed the $1 trillion mark. With this quantum jump, India has joined the elite club of nations as 12th country that achieved the milestone.
According to the report, Indian GDP, at the current price level, is Rs 41 trillion. On April 26, for the first time the Indian rupees went below 41 against the US dollar and the Country’s GDP touched $1 trillion mark.
The Swiss investment firm Credit Suisse has released a note that India has joined the club of nations such as US, Japan and China with its economy touching the 1 trillion mark.
According to the note, stock markets in eight out of 10 countries had risen in that year when its economy had touched $1 trillion mark. However, India has crossed the $1 trillion mark despite of slower earnings growth for sectors such as autos, banks and cement. India’s $944 billion stock market probably dropped as inflows pick up into fast growing economy.
The continuing strong capital inflows into the vigorously growing economy pushed the rupee to Rs 40 level this year and there is an expectation that it would even break through that barrier to 39.50.
Chin Loo Thio, currency strategist at BNP Paribas in Singapore said that the appreciation has been much faster than the economic analysts had expected. India has been transformed into a fairly good bet among emerging economies due to its strong growth, high attractive yields and a hawkish central bank.