India likely to reach $1 trillion GDP by next year
Central bank official estimates 9% growth for current fiscal year
ReutersPublished: February 25, 2007

AGRA, India: India's economy is set to expand at a sustained 9 percent annual rate or above and is likely to reach the $1 trillion mark by the next financial year, according to a deputy governor of its central bank.

Asia's fourth largest economy has grown at an average pace of over 8 percent in the last three years and is due to expand at 9.2 percent in the current fiscal year ending in March.

This will be the country's fastest growth in almost two decades, underlining its growing clout in the world economy as manufacturing and service firms power ahead.

"The government has released an estimate of 9.2 percent for this year. There is clearly an upward movement toward sustained growth of 9 percent as expressed officially," Rakesh Mohan told a conference in the northern Indian city on Saturday.

"We should be a trillion dollar economy by next year. I mean 2007/08."

Today in Business

World Bank data show that at the end of 2005 only nine economies had a gross domestic product of more than $1 trillion, with Brazil, South Korea and India the next closest at over $800 billion.

The Indian government wants to raise sustainable growth to 9 percent and beyond in order to spread wealth to the 260 million poor and generate revenue to bring down its large fiscal deficit.

Thanks to strong growth over the past few years, India's stubbornly high fiscal deficit has come down to a manageable level of around 4 percent of GDP from highs of 6 percent.

Analysts say the deficit may be as low as 3.6 percent of GDP, down from 4.1 percent in 2005/06, due to higher-than- expected tax revenues in the fiscal year to March 31.

India's national and state governments are bound by a fiscal responsibility law to bring down their deficits to 3 percent each by 2008/09, which analysts say is achievable.

"It is a major improvement that will take place to move to those targets," Mohan said. "But even by international standards 6 percent combined deficit is high."

India is trying to tidy up its finances and free funds for projects to create jobs and promote sustainable economic growth.

However, the red-hot pace is straining infrastructure and leading to a squeeze on capacity, which is fueling inflation, now at a two-year high above 6.5 percent.

Is this posted to mock Pakistan or do you have a genuine reason to put this up? It is sad if you have put it up to mock.

congrats to india. Since this is not the Indian Defense Forum, this thread should be deleted.

just out of interest whats pakistans GDP?

Grats india! You guys should be around trillion dollor GDP by now. Especially with a huge population.

way behind India at 145 billion$.

Crossing the 1 trillion dollar barrier for a country of over a billion is really not too special. India has to compare itself with China for the same population, and China is way ahead in the economy. Economy of Pakistan is more or less on the same scale of India, and growing the same rates.

We have better per capita income then India by 100$.

Dont tell that to a Bhangee, these delusioned rats even dont have that mush brain to understand what do it means, some moron have given them a dream of a trillion $ and they are dancing like rats.

He must have been ashamed to mention it if he understand what a trillion $ economy means for a billion and a half people (and that too is still a dream).

You can never teach these morons anything midful, they are slaves of Hindu delusion,mentally and physically.

Trillion dollars is nothing for a poor man who lives below the poverty line or could easily slip below poverty line if there is a serious problem. If you look at the various catogories theres prob around 800 million plus below pov line and in fear of slipping below for example they prob earn 1.5 dollars in comparison of 1 dollar less for former.

P.s the Maoists seem to be doing well

Well not according to the economic survey released by Pakistan. Per capita for Pakistan some $800s similar to India.

well check again Pakistan per capita income for this fiscal year 2006-07 is 847$ which will be even more in next one. Bottom line is Pakistan will surpass India in race of 1000$ per capita income.

We must tell the difference of nominal economy growth and real economy growth. With india's so clapping up their final across the trillion line, we have to ask what percentage of inflation is included in? I hear that the inflation is so high in India, and usually a 9% growth comes with 6 or 7% inflation rate!

you know what this means?
Indian manage to earn $1 per person per years

IT ONLY MEANS YOU NEVER PASSED YOUR MATH TESTS...

This thread needs to be deleted. No relevance to Pakistani economy whatsoever. I've reported it.