Macroeconomic environment of India: An outlook

Abstract

The stability of Macroeconomic environment is very much essential to sustain the overall competitiveness of a country. During the session of 2011-13 Indian economy was highly affected by uncertainty and volatility in currency exchange fluctuations. The world economy also remains challenged due to slowdown in advanced and emerging economies. Gross Domestic product of India increased by 5% in 2012-13 as against of 6.2% in 2011-12. Slacking external demand, weak business sentiment, tight monetary policy with inflation etc. are some point of reasons of slowdown in industrial and service sector. A high trade deficit was visible during the FY 201213. Merchandise exports have decreased and imports have increased during the FY 2012-13. But government of India has taken some unique steps by outlining a fiscal consolidation road map in order to reduce the fiscal deficit and a slow recovery in economic activity is expected in 201314.