India Sees High Economic Growth Rate projections from IMF




The article discusses the Economic Growth rate Projections for Indian Economy following the current Macroeconomic variables including Investment, Consumption, Fiscal Deficit and Inflation. Although the Growth rate forecasts are positive at 7.5% , the difficulties may arise from the Inflation and subsequent decrease in Aggregate Consumption.


Topics covered are Economic Growth, Expansionary Fiscal Policy , Components of Aggregate Demand, Investment and Consumption. Use the National Income Equation and Macroeconomic diagrams to explain the current achievement and the possible unintended consequences of Interventionist and Market based Supply side and Demand side policies. Use the National Income equation and AD/SRAS, LRAS diagrams to explain the impact of Inflation and Current Account Deficit on Economic Growth rate for Indian Economy.



Evaluation will cover Impact of Rising Inflation on the Real Income / Real GDP and implications of Contractionary Fiscal Policy – Taxation , Debts and Deficits – National Income, Unemployment Levels and Inflation. Consider short term and long-term impact on Consumers, Producers, Society and Government.