India's involvement with the global economy got a completely new dimension in 1991 when it committed to the cause of economic reforms.
GLOBAL ECONOMY TODAY
Economic developments throughout 2011 were not encouraging in major economies of the world-experts have apprehensions that the process of global economic recovery that began after the financial crisis of the 2008 is beginning to stall and the sovereign debt crisis in the eurozone may persist for a while.
We may sum up the economic situation of the world economy by taking clues from the informations given bellow.
(a) Recent data from the US economy show a revial and is projected to maintain its growth rate at 1.8 percent for 2012.
(b) The eurozone is expected to contract by 0.5 percent in 2012.
(c) The global economy is expected to grow by 3.3 percent in 2012 compared to 3.8 percent in 2011 as per the IMF's january 2012 update of the world economic outlook.
(d) GDP growth in advanced economies declined to 1.6 percent in 2011 compared to 3.2 percent in 2010 and is expected to be even lower at 1.2 percent in 2012 (IMF).
(e) Growth in emerging economies slowed to 6.2 percent in 2011 compared to 7.3 percent in 2010 and is projected to be 5.4 percent in 2012 (IMF).
Savings and investment
One of the features of the new normal in the world economy is the way savings as well as investment rates are distributed between the advanced and emerging economies. Investment trends drive growth and the divergence see in savings is almost symmetrically reflected for the investment rates.
Attempts of the G-20
At the reasons forwarded for the global crisis varied to different issues the debates and discussions in the G-20 (and other for a involving international organisations and financial institutions) have, therefore, been on wide-ranging issues.