The ascendency of India as an economic world power

For the last few years, we have been continuously hearing about high economic growth of India. 2 yeas ago, many people were talking about the possibility of double digit growth for the country. Well, in 2006, the economic growth nearly touched 10%. So, talking about double digit growth did not look to be too far fetched.

Now, Indian economy is suffering from global high food and oil prices. So, Indian government is perhaps not thinking about double digit growth but too much busy with finding effective ways to tackle inflation. According to World Bank, Indian economy may grow just 7% in 2008.

The Hindu wrote:

In its report on ‘Global Development Finance’ released on Tuesday, the World Bank said: “GDP growth in India eased to a still strong 8.7 per cent in 2007, from 9.7 per cent in 2006, and is projected to slow further to 7 per cent in 2008.” The Bank attributed the moderation in the country’s economic growth to the “monetary tightening in 2007 [that] led to softening in domestic demand.”

It is election time for India. So, I think that tackling inflation is more important than having double digit growth.