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Foreign Exchange Rate Forecast - Global Online Marketing Profile 2010 Forecast

Foreign Exchange Rate Forecast

Market Opportunity

India is the second largest country behind China, with an estimated population at more than 1.14 billion. Ranked by the exchange rate of the United States Dollar, the Indian economy is the twelfth largest in the world. India's vast and growing market presents itself as a huge competitor in the global market. Foreign Exchange Rate Forecast

During one of the greatest recessions this world has experienced, India is weathering the economic storm to post robust growth numbers in all sectors leading to impressive growth in its GDP. According to the CIA Factbook, India had a GDP of US $1.237 trillion in 2008, achieving 6.6% GDP growth. The per capita income of India is 4,542 US Dollars in the context of Purchasing Power Parity. Data from the Ministry of Finance shows Indian exports grew by 7.3% in dollar terms during April-February 2008-09 while its imports increased by 19.1% in April-February 2008-09. Unemployment rate currently stands at 6.8% from 7.2% in 2007 with an inflation rate of 7.8%.

The Indian economy has been stable and reliable in recent times, while in the last few years it's experienced a positive upward growth trend. It has consistently produced 8-9% annual growth rate which is supported by a huge inflow of foreign funds, growing reserves in the foreign exchange sector, both an IT and real estate boom, and a thriving capital market.

Based on statistics from the Department of State, there is a large and growing middle class of more than 50 million Indians with disposable income ranging from 200,000 to 1,000,000 rupees per year (4166-20,833 USD). Because of the weakening of the US dollar for the last two years, Indian Rupee has steadily appreciated vis-à-vis US dollar with 0.020837 USD equal to 1 Indian Rupee (x-rates.com). Foreign Exchange Rate Forecast

Best Industry Segments

The economy of India is as diverse as it is large, with a number of major sectors including manufacturing industries, agriculture, textiles and handicrafts, and services. Data shows from economywatch.com that agriculture is a major component of the Indian economy, as over 66% of the Indian population earns its livelihood from this area. As reported by CIA Factbook, major imports are textiles and ready-made garments, Internet-enabled services, agricultural and related products, gems and jewelry, leather products, and chemicals.

Furthermore, the Indian speaking population in India is growing by the day, which means that India has become the center of outsourcing activities for some of the major economies of the world including the United Kingdom and the United States. Outsourcing to India has been primarily in the areas of technical support and customer services. Foreign Exchange Rate Forecast

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