India's Sept ending quarter GDP figures likely to be tepid

Business

oi-Sunil

By Sunil Fernandes

Published: Wednesday, November 28, 2012, 10:52 [IST]

India's gross domestic product (GDP) figure for the quarter ending September, which is to be declared on November 30 is likely to be subdued. Analysts are largely expecting a GDP of around 5.2-5.5% , which would once again suggest that the economy continues to grow at a very slow pace.

Industrial production has slumped over the last few months, while exports have been consistently falling.

The country was expected to grow at a robust rate of around 8-9%, however, lack of investments and global slowdown have failed to maintain the GDP momentum.

The government has initiated a few reform measures like FDI in various sectors, however, these reforms are unlikely to push growth rates. The fiscal deficit continues to remain high, while inflation has remained at elevated levels.

The RBI has not been able to reduce interest rates, on account of the high inflation, which is deterring fresh investments.

It's going to be a challenge to maintain the growth momentum going forward, especially in the wake of global challenges.

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