Moody’s : India’s GDP Growth 7.5-8%

  • Global rating agency Moody’s projected India’s GDP growth for the 2011-12 fiscal at 7.5-8%
  • It also mentioned soaring domestic interest rates together with the present global uncertainties as the near-term factors that could affect its economic growth
  • Moody’s also owns about 29% of ICRA Ltd, one of India’s leading credit rating agencies
  • The rating agency is of the view that increasing domestic interest rates and an uncertain global economic atmosphere would perhaps diminish India’s near term GDP growth. However, the report cited that a recurring slowdown is not likely to change its credit outlook
  • Moody’s analysis was in synchronisation with the outlook held by the RBI on inflation
  • Inflation was probable to moderate to about 7% by the end of the fiscal in March 2012. The agency spotlighted on the concern over investment slowdown, a key matter that India Inc. mentioned for giving rise to a break in additional rate hikes by the RBI
  • India is not resistant to an international growth slowdown, the report yet cited that the intensity of domestic demand and the diverseness of the economy offer a buffer against a retardation in globally uncovered sectors

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