How does India fare against its BRIC peers?

Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty?

This is really the decade of emerging markets and India is at the heart of it. Therefore I see a multi-year bull market that lasts pretty much for the length of this decade.'

India's strong economy, robust corporate earnings and FIIs pumping in money have been playing well for the stock market.

The strong economy of India shows well when one compares its GDP growth rate with the other BRIC countries. 

According to the Minister of the National Development and Reform Commission, NDRC, of China, their economy is expected to grow by 7.5% annually in the next five years. In the first nine months, GDP grew at 10.7%, down 0.2 of a percentage point from the first half, and CPI stood at 1.3%, down 0.7 of a percentage point from the previous year.

Brazilian economists have cut their forecast for the country's economic expansion in 2006. According to them, the economy will likely expand by 2.95% this year, down from a forecast of 2.97% last week. They have also increased their this year's forecast for inflation to 3.08% from 3.05%.

Russia's GDP grew 6.6% in the first nine months of 2006. While, India's

overall GDP growth during the first quarter (April-June) of 2006-07 was 8.9% as compared to 8.5% during the comparable period of last year and is forecasted to be at around 8% during 2006-07.

 

Surpassing the three economies, India has emerged as the winner and this was encouraged by robust corporate earnings performance of service sectors like hotels and tourism, which in turn grew due to the strong growth in industrial production.

 

By-Piyu Sen