February 16, India (Other)

Friday, February 16

I found this article interesting, since I can now understand what all of these numbers actually mean since we discussed these topics and vocabulary in the last class.
In India, manucturing activity is rising, which is resulting in more industrial output. More products are being put on the market because more people are working at a time to produce more products. Many car companies in India raised there prices in 2007, yet there was still a 24% rise in car sales in January. Basically, people have more money to spend at the moment in India and companies are aware. It is a very good time for them to raise prices. However, Economists are very concerned with the hike in output, because this will eventually have a large effect on inflation and rising interest rates. It may sound great to the people of India at the moment, but the rising middle class income may have a negative overall effect on the economy if this spending continues.

http://timesofindia.indiatimes.com/NEWS/India_Business/Rising_demand_propels_car_fuel_sales_industrial_growth/articleshow/1600915.cms