13 April 2014

India election: Economic policies explained

The World Bank today projected an economic growth rate of 5.7 per cent in fiscal year 2014 for India on the back of a more competitive exchange rate and many large investments going forward.

More consumer buying = higher GDP. Indians, without a doubt, are going to have no reservations with consuming goods in the next year. Much has been written about 2013 as being a year in which India did not live up to its expectations. The middle class numbers stayed the same: around 300 million, making up around a quarter of the country's population. But GDP stalled in 2013 due to numerous reasons, many of which were outside of India's control.

However, with the US and the rest of the West making economic resurgences, the pastures will be green in 2014 for consumption activity. With a middle class that is expected to grow in the tens of millions, you can bet that consumption activity will grow dramatically.