Starting a new business? Get 40% off our accountancy services for 3 months! 😎

x

GDP figures from the Finance Ministry have shown that India’s economy has grown by 7.7% in the second quarter of this year compared with the same three months in 2010. This is the weakest quarterly growth its economy has seen for the last eighteen months however the result is still better than was anticipated. The rate of growth is predicted to continue to reduce due to increasing interest rates imposed by the banks in order to control inflation.

An economist at IIFL in Mumbai, Ahutosh Datar, has stated that even though India’s economic growth has slowed it is still very positive news that it is still growing and not shrinking as was previously feared.

The Indian Finance Minister, Pranab Mukerjee, has also expressed his optimism over the result saying that although the figures could be better, they were not too disappointing.

Interest rates have been increased by The Reserve Bank of India 11 times in the past seventeen months and they are expected to be increased yet again after a meeting regarding rates due to be held in September. Despite the continuous increases in interest the level of inflation is still way above target. In July inflation was calculated as 9.22%, well over double what the Reserve Bank of India hoped for.

Inflation is a bigger problem for India than for any other big economy and, even though it has been increasing interest rates quicker than any other country, it still remains an issue.

A breakdown of the different economic sectors in India has conveyed that construction is the sector that is struggling the most.

About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.

More posts by this author
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

What is a Non-Established Taxable Person for VAT?

There are special VAT rules in place for online sellers who are classed as non-established taxable persons (NETPs), and use an online…

Read More

The Accountancy Partnership – Our Positive Reviews

Here at The Accountancy Partnership, we’re proud of our customer reviews The reviews we receive from our customers show how hard we…

Read More

What Type of Legal Structure Should I Choose When I Start a Business?

The structure that you choose when you start a business affects how the business operates, the amount of tax you pay, how…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You will receive our bookkeeping software Pandle for free, as part of your package.

You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.

Please select and option below:

I will do my own bookkeeping
I want you to do my bookkeeping

Call us on 020 3355 4047 if you’re not sure.