Economist with various banks have pegged lower growth rate for the Indian economy in the coming financial year 2012. It is expected that the slowdown in the second half of the current fiscal year would continue to next year also. The most important factors which are affecting the growth rate of the economy are tightening of monetary policy and the continuous rise in the inflation rate.
While most economists see a growth rate of above 8%, Standard Charted Bank pegged down the rate to below 8%. On the other hand, HSBC is expecting the growth rate to be at 8.1% for financial year 2012, which is much below its prediction level of 9.1% for financial year 2011.
According to HSBC chief economist for India and Asean Leif Eskesen said: "Growth will slow down next year because of the base effect and partly because of its impact of the monetary and fiscal policy measures."
As per the reports of Morgan Stanley: the GDP growth rate of the economy would come down to 8.2% for financial year 2012 because of modest consumption demand but the investment would grow in a strong manner.
Citi Bank is expecting that the economy would grow by 8.4% in financial year 2011. A recent report by Citi says: "While the macro has deteriorated, most bad news on the inflation and interest rate front has been priced in."
Due to decline in industrial output, the GDP growth rate for the second half of the current fiscal year is expected to be at 8.3% , which is below the earlier expectation of 8.9%.
Dion Global Solutions Ltd
While most economists see a growth rate of above 8%, Standard Charted Bank pegged down the rate to below 8%. On the other hand, HSBC is expecting the growth rate to be at 8.1% for financial year 2012, which is much below its prediction level of 9.1% for financial year 2011.
According to HSBC chief economist for India and Asean Leif Eskesen said: "Growth will slow down next year because of the base effect and partly because of its impact of the monetary and fiscal policy measures."
As per the reports of Morgan Stanley: the GDP growth rate of the economy would come down to 8.2% for financial year 2012 because of modest consumption demand but the investment would grow in a strong manner.
Citi Bank is expecting that the economy would grow by 8.4% in financial year 2011. A recent report by Citi says: "While the macro has deteriorated, most bad news on the inflation and interest rate front has been priced in."
Due to decline in industrial output, the GDP growth rate for the second half of the current fiscal year is expected to be at 8.3% , which is below the earlier expectation of 8.9%.
Dion Global Solutions Ltd
