SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
SUBMITTED TO: PROF. HEMA BINDU KOTA
SUBMITTED BY:
BALJINDER SINGH 27113
NRIPENDRA SINGH 27067
NIKHIL VASU 27124
SHABAD KAPOOR 27007
SHILPA J 27074
SHRIKANT SHARMA 27134
VINIT GOGRI 27057
ECONOMIC ANALYSIS
Introduction
Economics experts and various studies conducted across the globe envisage India and China to rule the world in the 21st century. For over a century the United States has been the largest economy in the world but major developments have taken place in the world economy since then, leading to the shift of focus from the US and the rich countries of Europe to the two Asian giants- India and China.
According to some experts, the share of the US in world GDP is expected to fall (from 21 per cent to 18 per cent) and that of India to rise (from 6 per cent to 11 per cent in 2025), and hence the latter will emerge as the third pole in the global economy after the US and China.
Indian Economy experienced a GDP growth of 9.4 percent during 2007-08. By 2025 the India's economy is projected to be about 60 per cent the size of the US economy. The transformation into a tri-polar economy will be complete by 2035, with the Indian economy only a little smaller than the US economy but larger than that of Western Europe. By 2035, India is likely to be a larger growth driver than the six largest countries in the EU, though its impact will be a little over half that of the US. India, which is now the fourth largest economy in terms of purchasing power parity, will overtake Japan and become third major economic power within 10 years.
Macro Economic Developments
Industrial Growth and GDP:
Industrial growth released by CSO for the month of May 2008 stood at 3.8% (lowest in 6 years) compared to 11.6% growth recorded in the previous fiscal. The slowdown was