Indian Economy has regained the fastest growing economy tag for the December 2017 quarter when Gross Domestic Product (GDP) growth recorded a rise of 7.2%. Recently, China has announced GDP growth of 6.8% for the same quarter.
US economy currently ranks no 1 with GDP of US $ 19 trillion followed by Chinese economy at US $ 13 trillion. India presently stands at number 7 with GDP of around US $ 2.5 trillion.
Another significant indicator is Currency to GDP ratio, which currently stands at 10.5% for India; it is 9% for China; Brazil is 3%; South Africa is at 2.5%. Developed Countries, generally, have this ratio in the range of 4% to 6%. Post demonetization, the Currency to GDP ratio for India has come down by around 100 basis points that used to be at 2nd highest level in the globe.
Latest Consumer Price Index (CPI) based inflation in India is at 4.28% for the March 2018 against 4.44% for February 2018. Wholesale Price Index (WPI) based inflation has marginally decreased to 2.47% in March 2018 vis-a-vis 2.48% in February 2018. Interest rate in the economy is directly proportional to Inflation rate. Higher the inflation higher would be interest rate and other way round. The current Repo rate of RBI stands at 6% whereas reverse Repo rate is 5.75%.
Foreign Exchange Reserves determines the ability of the economy to carry on imports and repay Forex Loans along with interest, even if there is a trade deficit (Difference between Imports and Exports). India's FOREX reserves currently stands around US $ 425 billion whereas China and US have FOREX reserves of US $ 3,140 billion and US $ 126 billion respectively. Japan stands at number 2 position with FOREX reserves of US $ 1,200 billion.
Keep watching this space for interesting updates!
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