COMPREHENSION PARA - II

Paragraph - II
                                                                                                           Prerequisite: Words Must Know
       
The IMF has revised upwards the global growth projections, which are placed now at 4.4 per cent in 2011. The Indian economy is estimated to grow by 8.4 per cent in 2011 following a growth of 9.7 per cent in 2010. Under the baseline scenario in which contagion from the financial turmoil in the Euro area is contained, emerging market capital inflows are expected to remain strong and financial conditions robust. Key risk to emerging markets as per the update relate to overheating, a rapid rise of inflationary pressures, and the possibility of a hard landing.

The released estimates on 31 January 2011, the CSO revised growth in real GDP for 2009 - 10 from a level of 7.4 per cent to 8.0 per cent. growth in real GDP for 2008-09 also stands revised to 6.8 per cent. Compositionally,  there are significant changes in the GDP as per the Quick Estimates with growth in agriculture at 0.4 per cent; growth in industry of 8.0 per cent as against 9.3 per cent in the Revised Estimates and a sharper rise in growth in services at 10.1 per cent as against the 8.5  per cent indicated in the Revised Estimates. Growth in GDP at factor cost current prices was placed at 16.1 per cent in the Quick Estimates as against a level of 12.2 per cent suggested by the Revised Estimates.


(Source: Economic Survey 2010-11) 

COMPREHENSION PARA - I

Para - I
                                                                                                   Prerequisite: Words Must Know 

The inflationary pressures on  the domestic  front are likely to be exacerbated by the higher levels of global commodity prices and also the easy money policy being followed in several industrial nations trying to jump-start their own economies. The International Monetary Fund forecast indicates the likely continuance of high consumer price inflation for emerging and developing economies in 2011 due to continued robust demand and a sluggish supply response to tightening market conditions. The IMF has also upped its baseline projection for petroleum prices from US $79/bbl in WEO October 2010 to US $ 90/bbl in the January update of the WEO. Non-oil commodity prices are forecast to increase by 11 per cent in 2011. The update also indicated that near-term risks were now on the upside for most commodity classes and for some emerging  economies that had grown rapidly there was danger of overheating on account of closing of output gaps.

(Source: Economic Survey 2010-11)

MUST KNOW WORD SERIES - COMPREHENSION

Word List - (Must Know Words) 
Comprehension Para

Inflationary
Exacerbate
Jump-start
Sluggish
Upside
Upwards
Robust
Emerging
Subsequent
Deflator
Allied
Implicit
Domestic
Industrial Nations
IMF
WPI
Robust
Non-Oil commodity price
Consumer Price
Emerging Market
Roll-Back
Buoyant
Volatile

 Comprehension Exercise (Read Following Paragraphs)

 Comprehension Para - I

Comprehension Para - II

Comprehension Para - III

Comprehension Para - IV