India in 2004

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Case Details:

Case Code : ECOA118
Case Length : 22 Pages
Period : 2004
Organization : -
Pub Date : 2004
Teaching Note :Not Available
Countries : India
Industry : -

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The CMP (Common Minimum Program) is less ambitious than congress's economic manifesto. But its admirable goals - annual growth of 7-8%, alleviating poverty, helping farmers, empowering women, raising spending on health and education and so on are so vaguely represented that it is like a child's letter to Santa Claus. Everybody can pick up a desired outcome from the list and believe that Christmas is coming1.


In early 2004, with the Indian economy growing at 8% a year, Indian politicians, businessmen, diplomats and journalists were displaying a new sense of self-confidence. India's hour seemed to have arrived. For a decade, the economy had seen average real growth in GDP of less than 6% a year. It seemed the country was about to take off on a much more rapid growth rate of around 8% a year.

Foreign exchange reserves at more than $100 billion, had reached record levels. The stock market had recorded its biggest annual rise in 12 years. Inflation and interest rates were low.

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The current account was more or less in balance. The country was riding the wave of globalization of services, led by the computer software industry...

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1] The Economist, 12th June 2004.

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