India in trillion-dollar economy club
India's economy has swelled to a trillion dollar - making it only the 12th nation to reach this milestone.
New Delhi: Propelled by growth in services and manufacturing sectors, coupled with an appreciating rupee, India's economy has swelled to a trillion dollar - making it only the 12th nation to reach this milestone.
According to Government data released on Thursday, the country's economy at market prices stood at Rs 41,25,724 crore at the end of fiscal 2006-07, which equals nearly $1,010 billion at the current foreign exchange rate of the rupee.
The rupee was trading at 40.72 to a dollar on Thursday, up from Wednesday's close of 40.86/87. However, the rupee's level at the end of last fiscal was near 43 against the greenback, which puts the GDP in dollar terms at $957 billion.
While at factor cost the economy expanded by 9.4 per cent to Rs 37,43,472 crore, at market prices the growth translated to over 15 per cent.
The economy's trillion-dollar milestone comes just three days after the Indian stocks' combined value crossed this level. The market capitalisation as of March end was $805.2 billion.
India becoming a trillion dollar economy also augurs well for the country's stock market, as a Credit Suisse report said that stock markets in eight out of ten countries had risen in the one year after their economies first crossed this mark.
Companies have lined up plans to tap the capital market to raise over Rs 50,000 crore (around 12 billion dollar), which would lift the cumulative market capitalisation at Indian bourses by over 100 billion dollars.
Only the US, Japan, Germany, China, UK, France, Italy, Spain, Canada, Brazil and Russia have breached the trillion- dollar GDP level in the past, according to Credit Suisse.
(With agency inputs)