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Indian Oil Case Study

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World Economy

anagement’s discussion & analysis

(Forming part of the Directors’ Report for the year ended 31st March 2010) INDUSTRY STRUCTURE & DEVELOPMENTS

During the course of the year, international economic conditions exhibited a marked improvement with the global economy getting into an early recovery mode. The vital statistics of the engine of the world economy entered the positive territory. After June 2009, world trade flows entered into an expansionary mode after declining for several months and GDP growth turned positive. A corrective policy action on both fiscal & monetary fronts has been at the very core of the recovery witnessed. However, the recovery process has not been uniform and has varied in speed & strength across countries and regions, with emerging economies leading the way. While the recovery has been early, it is still nascent and fragile and the key risks and destabilising factors continue to exist. This calls for further reforms in the financial markets and controlling fiscal deficits in the light of rising commodity prices & high unemployment rates. The recent debt crisis in Greece has only highlighted the fragility of the recovery process and raised questions on the credibility of the economic recovery and the stability of financial markets. Indian Economy Indian economy has been amongst the first economies to emerge out of the grips of recessionary forces in a incredible recovery led by the industrial and services sectors. The acceleration in the growth of the manufacturing sector from 3.2% recorded in 2008-09 to 10.8% during 2009-10 has been particularly remarkable, especially in the automobiles, plastics & chemicals

sub-sectors. Besides, the turnaround witnessed in the infrastructure sectors such as electricity, telecom, coal, roads etc. has also been particularly encouraging. Trade flows, which had been one of the...

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