India Economic Indicators

The boom in India Inc's is attributed to steep rise of key ' India Economic Indicators ' like Industrial
Growth, FIIs and FDIs. Further, other ' India Economic Indicators ' like Balance-of-Payments,
Merchandise Exports, Invisible Accounts and Foreign-Exchange-Reserves also had substantial
contribution toward growth of Indian Economy.
• India's Industrial Growth - for the first time has exceeded 10%. Manufacturing growth rate has
exceeded 12 % in 6 months (April-September 2006). The mining and quarrying sector has
registered a growth of 4%. The electricity sector recorded a double-digit growth of 12% during
September 2006 as compared to September 2005. Consumer durables and non-durables have
also recorded upswings. The use-base economic sub-groups, intermediate goods have registered
an impressive growth of almost 15% during September 2006 over September 2005. Consumer
goods have recorded a high growth of 13%. The National Manufacturing Competitiveness
Council has targeted 12 to 14% growth in the 11th Plan period.
• FIIs - net investments in equities crossed US$ 7 billion in calendar 2006. FII net investment till
6 November 2006 has been US$ 7.08 billion, according to the Securities and Exchange Board
of India. 151 new FIIs have opened their offices in India during first 10 months of 2006. The
total number of FIIs in India stands at 974 as on November 2006.
• FDI - India envisage of attracting $10 billion of foreign direct investment (FDI) this year as
inflows have nearly doubled to US$ 4.4 billion in April-September 2006. In September 2006,
FDI inflows grew 225% to US$ 916 million as compared to US$ 282 million in the same month
last year. Services attracted maximum investment of US$ 1.5 billion recording growth of 350%.
Telecom sector with inflows of US$ 405 million has registered the maximum growth of 950%.
Corporate India has recorded its highest rise in salaries at 22% in the first half of 2006-07
against increase of 17% in 2005-06.
• India's Balance of Payments – is expected to remain comfortable.
• Merchandise Exports - recorded strong growth.
• The Invisibles Account – remained positive during last financial year and financed 2/3 of the
trade deficit.
• India's Foreign Exchange Reserves - were US$ 166.2 billion as on October 2006, showing
increment of US$ 14.5 billion over end-March 2006.
The upswing in ' Indicators of Indian Economy ' especially manufacturing and services sector activities
together with bullish stock market suggests that the recent growth momentum of the ' India Economic
Indicators ' is likely to be maintained further.