The Indian economy lost further momentum in the October-December quarter as the global economic slump hit almost all segments of the economy, data released by the government showed. With the third-quarter GDP numbers coming in below expectations, the official full-year estimates are most likely to be scaled down. Also, the Reserve Bank of India (RBI) will come under more pressure to cut interest rates. The GDP grew by 5.3% in the quarter ended December 31, 2008 as against expectations of a 6% expansion. The Indian economy had grown by a much healthier 7.6% in the second quarter while it registered a solid 8.9% growth in the third quarter of the previous financial year.
GDP growth in the April-December 2008-09 period stood at 6.9% versus 9% in the corresponding period of last year, the CSO data showed. The GDP expanded at 7.6% in the first half of the current fiscal year. The Government and the RBI expect the Indian economy to grow by 7.1% in the year ending on March 31. However, given the strong headwinds confronting the Indian economy right now, that outlook now looks very much in danger of being reduced.
GDP growth in the April-December 2008-09 period stood at 6.9% versus 9% in the corresponding period of last year, the CSO data showed. The GDP expanded at 7.6% in the first half of the current fiscal year. The Government and the RBI expect the Indian economy to grow by 7.1% in the year ending on March 31. However, given the strong headwinds confronting the Indian economy right now, that outlook now looks very much in danger of being reduced.
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