Union Budget Review
UNION BUDGET 2012-2013 ANALYSIS
SAJILAL.N.S
Roll No: 8, SIES EMBA 2012
CONTENTS Overview of Indian Economy Approach to Budget Key Attributes of 2012-2013 Budget Challenges Going Forward
OVER VIEW OF INDIAN ECONOMY
The Indian economy had left behind the low-growth track of the early 1980s, following the bold economic reforms initiated in 1991-93. India began to appear as a significant player in the global economy. India’s exports began to climb, its foreign exchange reserves, which for decades had hovered around 5 billion dollars, rose exponentially after the economic reforms and in little more than a decade had risen to 300 billion dollars. Indian corporations that rarely ventured out of India suddenly started investing all over the world and even in some industrialized countries.
The globalization of India has given rise to new opportunities but it has also brought with it new challenges and responsibilities. Every time there is a major financial crisis anywhere in the world, there is need to take brace position. And, in turn, the rise and fall of India’s growth rate has an impact on global growth and there is need for India to take this responsibility seriously. The brewing trouble of Euro-zone Debt Crisis is posing a threat to global economical growth and seriously questioning the recovery strategies of various developng economies around the globe.
APPROACH TO THE BUDGET
For Indian economy, recovery was interrupted 2011-2012 year mainly due to intensification of debt crises in Euro zone, political turmoil in Middle East, rise in crude oil price and earthquake in Japan. GDP is estimated to grow by 6.9 per cent in 2011-12, after having grown at 8.4 per cent in preceding two years. India however remains front runner in economic growth in any cross-country comparison. One side, the approach of the last rear budget was mainly to sustain the economic growth, on the flip side the monetary policy was tight and
SAJILAL.N.S
Roll No: 8, SIES EMBA 2012
CONTENTS Overview of Indian Economy Approach to Budget Key Attributes of 2012-2013 Budget Challenges Going Forward
OVER VIEW OF INDIAN ECONOMY
The Indian economy had left behind the low-growth track of the early 1980s, following the bold economic reforms initiated in 1991-93. India began to appear as a significant player in the global economy. India’s exports began to climb, its foreign exchange reserves, which for decades had hovered around 5 billion dollars, rose exponentially after the economic reforms and in little more than a decade had risen to 300 billion dollars. Indian corporations that rarely ventured out of India suddenly started investing all over the world and even in some industrialized countries.
The globalization of India has given rise to new opportunities but it has also brought with it new challenges and responsibilities. Every time there is a major financial crisis anywhere in the world, there is need to take brace position. And, in turn, the rise and fall of India’s growth rate has an impact on global growth and there is need for India to take this responsibility seriously. The brewing trouble of Euro-zone Debt Crisis is posing a threat to global economical growth and seriously questioning the recovery strategies of various developng economies around the globe.
APPROACH TO THE BUDGET
For Indian economy, recovery was interrupted 2011-2012 year mainly due to intensification of debt crises in Euro zone, political turmoil in Middle East, rise in crude oil price and earthquake in Japan. GDP is estimated to grow by 6.9 per cent in 2011-12, after having grown at 8.4 per cent in preceding two years. India however remains front runner in economic growth in any cross-country comparison. One side, the approach of the last rear budget was mainly to sustain the economic growth, on the flip side the monetary policy was tight and