After the bleak condition of Indian economy, there has been tremendous growth in industrial production. In fact, commerce minister has indicated that production rates in most industries are in double digits, reaching the highest point in the last two years.
It is being speculated that the worst is definitely behind us. All hopes are now pinned to a normal monsoon next year, which may bring with it a promise of an increased growth rate. The prime minister predicts an increase in the growth rate of 5% to about 7% in the next year. Also, with this wishful thinking, there will be concerted efforts towards raising the growth rate once again to 9%.
The fiscal stimulus package that was promised to be injected into the near comatose economy, is expected to be released early in 2010. This stimulus package is estimated to be between $50 billion to $80 billion. Though with this package, India’s deficit will grow to 12% of the GDP, it will provide a temporary relief to the recovering economy.
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