South Asian Business news and information

Zee News.com reports:   

"The sustained expansion of the Indian economy would see growth at between 8.5-9.5 percent over the medium term following growth of 8.7 percent in 2007," the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) said.

"UNESCAP expects inflation at 5 percent for 2008."

India`s widely watched wholesale price inflation inched close to 6.0 percent in early March, above the central bank`s comfort level of 5.0 percent.

Pointing out that inflation rate in India is expected to moderate to 5 percent during 2008-09 from 5.5 percent in 2007, the UN-Escap survey warned, "(inflationary) pressures could persist as international commodity prices, especially oil and food prices, are high".

The report expressed optimism about India’s trading. It said that imports and exports would grow steady and strong. Indian government from now on should prioritize its spending. It should spend more after public welfare because of widespread poverty. Agriculture can be a strong means to eradicate poverty.  Increasing productivity in the agricultural sector and liberalization of the agricultural trade would change lives of 48-51 million people.

According to the report, the main challenge for fast growing countries like India will be the rising fuel price. High oil prices will be the major obstacle for development. I think, Indian government and private sectors should work toward developing and popularizing alternative source of energy around the country.

If you are interested to see the report for more details, visit the following links:

http://www.unescap.org/  (official website of UNESCAP)

http://www.unescap.org/survey2008/download/index.asp (report download)

http://www.unescap.org/survey2008/notes/index.asp

http://www.unescap.org/survey2008/notes/india.asp

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