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Country Report India
?The scale of the Indian National Congress party's victory in the April-May 2009 general election means that the Economist Intelligence Unit expects the new government to be cohesive and durable. ?Relations between India and Pakistan are thawing, and it remains the case that India's broader objectives towards Pakistan cannot be realised without a resumption of the composite dialogue between the two countries. ?Congress's continuation in power means that economic policy will remain broadly unchanged. Priority will continue ti be given to combating the effects of slower economic growth and to measures targeting the rural sector. ?The more dominant role that Congress will take in the new governing coalition means that there is scope for further progress on economic reform. However, internal party dynamics ensure that progress not guaranteed. ?Real GDP growth is forecast to slow to5.5% in fiscal year 2009/10 (April-March) owing to the global recession. Economic growth is forecast to accelerate to 6.3% in 2010/11. ?Consumer price inflation is forecast to remain stubbornly high, at an average of 7.7% in 2009, despite the fall in wholesale prices. However, it should ease to 5.6% in 2010, although wholesale price inflation will rise again.
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