Economic Survey: Four charts that explain the health of Indian economy

New Delhi,Shubhashish: Whether the Union Budget of 2015 will bring ‘Acche Din’ for Indians or not will become amply clear on Saturday February 28, 2015.

However, as Finance Minister Arun Jaitleyreadies himself to table the Economic Survey at the floor of the Parliament on Friday, here are four charts that you must know to gauge the health of Indian economy today.

Gross Domestic Product (GDP)

Simply speaking, GDP is the value of all finished goods and services produced in a country.

India is expected to grow at 7.4% in the current fiscal. Under the new data scheme, the growth figures have been revised upwards.


Increase in prices of goods and services over a period of time is called inflation.
Inflation is an important economic metric to track as higher inflation means your money would buy you less and less of a good that you could have if the increase in its price was low or nil. However, some inflation is important for the economy as it signals growth.


Current Account Deficit (CAD)
Th difference between the value of goods imported by a country to the value of goods exported is the current account deficit.

India must aim to increase its exports and decrease imports. Although, the fall in oil prices will help in containing CAD to reasonable levels. But a higher CAD directly impacts the Rupee’s value.


Loan Growth
An economy needs investments if it has to grow. The Reserve Bank of India cut key interest rates by 25 basis points earlier this year but it hasn’t moved bank’s loan books by much. This is going to be an important aspect of the Make in India campaign to increase manufacturing in the country.


Today’s Economic Survey is likely to paint a rosy picture of the Indian economy and steller growth figures going forward.

However, for sustained growth, sustained investments are needed. The RBI is keeping a hawkeyed focus on inflation. With the ball in government’s court, it remains to be seen how far the Narendra Modi government goes in forwarding his reform agenda.

Posted by on February 27, 2015. Filed under Editorial. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.