01-25-2006, 04:42 AM
India to Become the World's Third Largest Economy in 2006
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->India to Become the World's Third Largest Economy in 2006
CHICAGO, Jan. 24 /PRNewswire/ -- After significant accelerations in economic growth recently, India's economy is expected to equal or surpass Japan as the world's third largest sometime in 2006. According to Dr. William T. Wilson, Chief Economist for Keystone India, <b>India's economy, measured in PPP terms, will eclipse the $4 trillion mark in 2006</b>, making it equal to or greater than Japan's. Only the United States and China will possess larger economies.
"The results of liberalizing strategic sectors such as telecom, banking, aviation and real estate are now beginning to show," states Wilson. After growing at 8.5% and 6.9% in 2003 and 2004 respectively, India's economy is expected to grow 7.8% in 2005-2006 (fiscal year ending in March) then decelerate modestly to 7% in 2006-2007. Depending upon the direction of energy prices, inflation is expected to run in the 5-5.5% range for 2006.
<b>Faster growth is expected to boost salaries by an inflation-adjusted 7 percent this year, fueling robust consumer spending. The mobile telecom market in India, the fastest growing in the world, is growing at over 2 million subscribers per month. Motor vehicles' sales, which surpassed the one million mark last year, are expected to continue registering double-digit growth over the next few years. The housing market, expanding at a 10-15% annual clip, is expected to remain robust in 2006.</b>
A number of hurdles do lie ahead. The outcome of state elections in 2006 will play a significant role in determining the health of the coalition government at the federal level. Higher energy prices are also hurting. India currently imports 70 percent of its petroleum.
For interviews, Dr. Wilson can be contacted at 312-943-7764 or william.wilson@keystone-india.com .
Keystone India provides cross border trade facilitation and asset management services to clients in the U.S. and India. Dr. Wilson is managing director and chief economist for Keystone India. He was formerly Chief Economist for Ernst & Young. His profile can be accessed at http://www.keystone-india.com/ .
* PPP eliminates price level differences between nations. At current
exchange rates, India had the world's 12th largest economy in 2005.
First Call Analyst:
FCMN Contact:
Keystone India
CONTACT: Dr. William T. Wilson of Keystone India, +1-312-943-7764,
william.wilson@keystone-india.com
Web site: http://www.keystone-india.com/
© 2006 SYS-CON Media Inc. <!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->India to Become the World's Third Largest Economy in 2006
CHICAGO, Jan. 24 /PRNewswire/ -- After significant accelerations in economic growth recently, India's economy is expected to equal or surpass Japan as the world's third largest sometime in 2006. According to Dr. William T. Wilson, Chief Economist for Keystone India, <b>India's economy, measured in PPP terms, will eclipse the $4 trillion mark in 2006</b>, making it equal to or greater than Japan's. Only the United States and China will possess larger economies.
"The results of liberalizing strategic sectors such as telecom, banking, aviation and real estate are now beginning to show," states Wilson. After growing at 8.5% and 6.9% in 2003 and 2004 respectively, India's economy is expected to grow 7.8% in 2005-2006 (fiscal year ending in March) then decelerate modestly to 7% in 2006-2007. Depending upon the direction of energy prices, inflation is expected to run in the 5-5.5% range for 2006.
<b>Faster growth is expected to boost salaries by an inflation-adjusted 7 percent this year, fueling robust consumer spending. The mobile telecom market in India, the fastest growing in the world, is growing at over 2 million subscribers per month. Motor vehicles' sales, which surpassed the one million mark last year, are expected to continue registering double-digit growth over the next few years. The housing market, expanding at a 10-15% annual clip, is expected to remain robust in 2006.</b>
A number of hurdles do lie ahead. The outcome of state elections in 2006 will play a significant role in determining the health of the coalition government at the federal level. Higher energy prices are also hurting. India currently imports 70 percent of its petroleum.
For interviews, Dr. Wilson can be contacted at 312-943-7764 or william.wilson@keystone-india.com .
Keystone India provides cross border trade facilitation and asset management services to clients in the U.S. and India. Dr. Wilson is managing director and chief economist for Keystone India. He was formerly Chief Economist for Ernst & Young. His profile can be accessed at http://www.keystone-india.com/ .
* PPP eliminates price level differences between nations. At current
exchange rates, India had the world's 12th largest economy in 2005.
First Call Analyst:
FCMN Contact:
Keystone India
CONTACT: Dr. William T. Wilson of Keystone India, +1-312-943-7764,
william.wilson@keystone-india.com
Web site: http://www.keystone-india.com/
© 2006 SYS-CON Media Inc. <!--QuoteEnd--><!--QuoteEEnd-->