Indian Economy Shows Positve Signs - Early Recovery Possible

In a week where I have written about positive economic news in the UK and the EU, and read about positive economic news in Turkey, the latest positive economic news comes from India.

Industrial output in India was 1.4% higher in April this year than it was in April last year, almost twice the 0.75% growth recorded in March.

The sign of recovery can also be seen in the 5.8 percent growth in the first quarter of 2009. The figure was higher than the previous forecast of 5.5 percent. Meanwhile, the Indian Industrial Product index stopped declining in April and resumed climbing.

The government has been credited for the growth and positive outlook, rather its stimulus measures to combat the slowdown.

India's economy has always been expected to continue growing this year but at a much slower rate. The forecasts may now prove to have been overly pessimistic.

One aspect of the Indian economy that is still performing extremely well is the services sector, particularly Indian outsourcing of IT and graphic design related services.

As the international downturn has progressed, companies are looking for cheaper alternatives. If anything the international downturn may have benefited Indian outsourcing. I myself have hired Indian companies to do design work and they did not let me down.