India in 2004


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Case Details:

Case Code : ECOA118
Case Length : 22 Pages
Period : 2004
Organization : -
Pub Date : 2004
Teaching Note :Not Available
Countries : India
Industry : -

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For delivery in electronic format: Rs. 300;
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The CMP (Common Minimum Program) is less ambitious than congress's economic manifesto. But its admirable goals - annual growth of 7-8%, alleviating poverty, helping farmers, empowering women, raising spending on health and education and so on are so vaguely represented that it is like a child's letter to Santa Claus. Everybody can pick up a desired outcome from the list and believe that Christmas is coming1.

Introduction

In early 2004, with the Indian economy growing at 8% a year, Indian politicians, businessmen, diplomats and journalists were displaying a new sense of self-confidence. India's hour seemed to have arrived. For a decade, the economy had seen average real growth in GDP of less than 6% a year. It seemed the country was about to take off on a much more rapid growth rate of around 8% a year.

Foreign exchange reserves at more than $100 billion, had reached record levels. The stock market had recorded its biggest annual rise in 12 years. Inflation and interest rates were low.

The current account was more or less in balance. The country was riding the wave of globalization of services, led by the computer software industry...

Excerpts >>

1] The Economist, 12th June 2004.

 

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