Budget 2013-2014

From 2003-2004 to 2006-2007, annual Real Growth Rate increases from 8.4% to 9.7%. Because of the summer’s credit-market crisis, the Indian GDP Growth decrease to 9.0% from 2007 to 2008 and Indian government estimates GDP Growth for 2008-2009 is 7.1%. The decrease of GDP ascribes the global financial crisis which affects India primarily through trade and capital outflows (The World Bank, 2008:16). On trade, exports are possible to weaken and make its contribution to GDP growth may be drop sharply. However, during

523 million ringgit for development of Esscom Armed Force camp in Felda Sahabat, Lahad Datu, Sabah.

India’s economy is one that appears to be on the brink of a major recession. Their central bank has made bad choices over the last number of years. This has lead to a low growth within the country and a high inflation rate. They changed their political leadership to someone who was more open to change and reform, but this has not come about. India reformed its tax system, which they believed would be the key to success in the country. This in fact caused the opposite. The economy slowed down sharply. They banned the sale of cows in India due to religions reason and this stopped the growth of agriculture as this was a huge export for the country. India has about 12 million new young people enter its job market each year and finding jobs for this vast quality of people is a hinderance for the country and yet another driving factor for lower growth. India expects the initial impact of their tax reform to be over and now they will see a stabilization of their economy. It is believed their economy will now grow in small increments due to this stabilization.

From April to June 2005, India’s GDP grew at 8.1 per cent, compared with 7.6 per cent in the same period the year before. More impressively, India is achieving this result with just half of China’s level of domestic investment in new factories and equipment, and only 10 per cent of China’s foreign direct investment…

In 2013 the total exports for India was at $313.2 billion whereas the import stood at $467.5 billion (CIA, 2014). India followed the Adam Smith model producing only what it was efficient at and imported the rest. There started a reversal in capital inflows which hit the export demand and posted a crunch in the domestic markets leading to a decline of more than 2% in India’s GDP in the fiscal year 2008-2009 (Kumar & Vashisht, 2009). In 2008 India was already experiencing a high inflation rate, which reduced expenditure in the country. To address the crisis and its affects the Indian government and the banks introduced fiscal stimulus and relaxed monetary policies in order to boost domestic demand. The market interest rates increased to 20% and above suddenly. India had received a fiscal stimulus of $80 billion injected into the economy to ensure liquidity. India was loosing badly on FDI’s and remittances. During 2008, India’s FDI inflows experienced a negative growth of 2% (Kumar & Vashisht, 2009). Remittances also are a major part of the capital inflows of the country, in 2008 the remittance inflow declined by more than 29% (Kumar & Vashisht, 2009) as every country first wanted to protect jobs of its home citizens and there was a severe lay off. Exports to USA is a major component of India’s GDP. After a sharp decline in the demand from the US, India had to lay off more than 300,000 workers instantly. There was a decline in exports of India by

India is a developing country. The factors hindering development of the country are many. Some of them can be attributed to the low per capita income and larger chunk of the population living under the poverty line. India is a country with poor people but with rich natural resources. It can be said that the country’s potential is either the human resource or the natural resources are not adequately utilized to the maximum extent and that resulted in low per capita income. India is an agrarian economy. The economy is marred with unemployment and under employment. Since the economy is basically agrarian, disguised unemployment is also rampant among the farmer community.

It is estimated that India will remain growing at levels around seven percent in 2017-2018. This growth is being stimulated by further market freedoms and reforms addressing India’s ease of doing business, as well as an active Government of India-driven campaign to increase local manufacturing, grow the agricultural sector, and attract greater levels of foreign direct investment.

and the highway construction (37%), we notice that funds allocated for each program has yearly

India’s economy today is thriving with it being the third largest country in the world in terms of its purchasing power. India is predicted by Goldman Sachs the (Global Investment Bank) in the year 2035 to be one of the largest economies in the world just under the US and China. India still has a few hurdles to climb because of its divided economy caused by a population explosion, poverty, unemployment and rural urban divide (http://www.mapsofindia.com/india-economy.html).

In April -February 2013/14 FY. , India’s trade with foreign countries has increased in comparison with the same period in 2011/12 FY. by 1.9 % and amounted to 714.1 billion U.S. dollars, while exports declined by 4.0 % (to 266.0 billion U.S. dollars), in the same time imports increased by 0.3 % ( up to 448 , U.S. $ 1 billion ). In general, over the last five years of India's foreign trade has increased almost twice. Reduce of exports of the country to the 2012/13 FY. was associated with the second wave of the financial crisis in the Eurozone and the unfavourable world market conditions on its core products .

The economy in Indian subcontinent was booming till mid 2008. Almost all the sectors saw a high growth and market sentiments were positive. Sales of all the goods and services including luxury sectors like travel, real estate and automobile saw good times.

Amid 2006-07 against the aggregate accessible funds of Rs. 12073.56 Crore with the states, Rs. 8823.36 Crore was used. The normal fund use every region was Rs. 44.12 Crore in 2006-07. For 2007-08 the government made a budget procurement of Rs 12000 Crore. Out of this Rs. 8303.82 Crores have been discharged up to fourteenth November 2007. Out of this, Rs. 5365.99 Crore have been discharged to the Phase I 200 districts and Rs. 2937.92 Crore have been discharged to the Phase II 131 districts. Amid 2006-07, 2.12 Crore households had requested employment, out of which 2.10 Crore households were given employment. Amid the year 90.51 Crore individual days of employment was given under the project.

to the GDP. India 's economic growth rate slipped to 5.3 % in the fourth quarter of 2011-12, the

Present paper utilizes the annual data of GDP, Indian FDI, level of Investment and Export in real terms from the period 1989/90 to 2013/14. The concerned variables are transformed into logarithm and hereafter these are denoted by 〖LnGDP〗_t,〖LnFDI〗_t 〖LnI〗_t and 〖LnX〗_t .

* The security sector will be provided RM4.6 billion, of which RM3.9 billion is for the defence sub-sector and RM644 million for internal security.