the real economy macroeconomic scene 2 1 india recorded one of highest growth rates in world 2003 04 second only to china among emerging market economies according development indicators 2004 became fourth largest terms purchasing power parity after us and japan this robust economic performance was particularly noteworthy an environment marked by hesitant global recovery heightening geo political tensions during year volatility international crude oil prices large asset price movements financial markets engendered abundant liquidity domestic developments largely immune business cycle powered a surge gdp 8 per cent 15 years table agricultural rebound typical post drought supply response indian played key role resurgence activity also firmed up wide range manufacturing services sectors trade hotels restaurants transport storage communication surpassed trend capital goods production continued merchandise exports weathered pressures rupee s appreciation against dollar posting above 20
