Performance Evaluation of Indian Economy Post Global Turmoil

Indian economy reviving faster than many had expected, there is a renewed focus on the fiscal consolidation process. Due to the impact of the global crisis, the performance of Indian economy has been sluggish through both trade and funds flow channels. India's economy grew 7.7% in the June quarter from a year earlier, almost in line with expectations as a result of poor industrial output. The industrial growth plunged to 21-month low of 3.3% in July as against 8.8% in June 2010. The 2011 while there is little possibility for the raw materials and necessary commodities to be affected by the crisis, there are chances for the value-added items like designer apparels or handicrafts to be affected. Slowdown in the pace of Indian economy is caused by the economic downtrend in the US and Euro Zone. Although the country's central bank while downsizing the growth projection to 8% for 2011–12 mentioned the downside risk from the sovereign debt crisis in the Euro Zone states, it emphasized the negative impact of high commodity prices, especially of oil, and accentuation of inflationary pressure, and high interest rate in the emerging market as the main causes of lower GDP growth. The present paper attempts to analyze the performance of economic indicator to 2008 and 2011. Author has concluded with suggestion to improvise some key area in economy to which help country to reboots in the global world.