Macroeconomic Analysis of the Indian Economy Assignment

Macrostinting Analysis of the Indian Economy - Assignment Example8). Gross domestic harvest-feast Gross domestic product indicates an scrimpings productiveness and possible investment advantages from the saving. High stark(a) domestic product shows positive prospects and increasing apparent motion implies a growing economy with investment opportunities and eminent demand for utilities among its citizens (Dwivedi 2012, p. 55). Indias take in domestic product is relatively eminent it has been estimated at about $ 1867 jillion and its possible implications on the proposed investment contribute be explored from its trend. Trend in the countrys economic data for the last(prenominal) eight years identifies an increasing gross domestic product and this shows an increasing productivity level. The economy reported gross domestic product at about $ 834 one million million in 2006, a value that increased to about $ 949 billion in the fiscal year ended in 2007, and $ 1238.6 billion i n the fiscal year ended 2008. The economys gross domestic product save $ 1867.4 billion by the year. This trend identifies the economys growth potentials and it is consequently suitable for the proposed investment. The increasing trend also means availability of utilities and employment opportunities (Exim Bank 2013, p. 1). Service industry is the most active in the economy followed by the industrial sector. The help industry contributes more than half of the economys gross domestic product with the industrial and agricultural sector as the other major contributors. A revaluation of the gross domestic product by sectors over the past eight years further identifies a decline in significance of the agricultural sector to the economy and an increase in significance of the service industrys significance. Significance of the industrial sector has moreover been constant. The agricultural sector and its... This paper makes a conclusion that consumer price mogul is another significant indicator for evaluation. Consumers prices have been gaining stability over the past years and this further ascertain stability in money value. The countrys consumer index is however high and this communicates high living standards besides high ability to spend. Further, the high propensity to spend communicates high local demand for the investment should it be done in India. Foreign direct investment into the economy has been increasing and the trend identifies recognition of the countrys investment potentials by global investors.The macroeconomic indicators therefore identify positive investment prospects with the Indian economy because the indicators have been improving in the past years. The economys gross domestic product, exchange rate, current account balance, foreign direct investment, and consumer price index indicate increasing stability. In addition, the countrys political environment, accessibility to the global economy, and its investment orientated fiscal and monetar y policies identify its suitability to the companys proposed investment. Its inflation rate and the low unemployment rate, however, wake concerns of potential economic challenges. Poor technology may further challenge the investment, but technology can be imported. This report therefore recommends the Indian economy for the proposed investments because of the diverse economic advantages that outweighs the possible disadvantages.