For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Indian economy may post over 5.5% growth in Q2: Moody’s

|
Indian economy may post over 5.5% growth in Q2: Moody’s
Rating agency Moody's today said Indian economy is expected to have grown by a little more than 5.5 per cent in the last quarter, and an initial spike in investor sentiment after recent reforms has faded and the "reality of India's deep-seated structural problems" has begun to set in.
 

The reforms proposed by the government may help reduce the key risks facing the economy but cannot lift the near-term outlook, Moody's said, while adding that the economy is growing well below its long-term potential.

It, however, said that the growth rate could be near the bottom of its current downward cycle.

The country's GDP numbers for July-September quarter is scheduled to be announced next week on November 30.

Moody's said that the growth rate for that quarter could be "a little more than 5.5 per cent year-on-year, roughly the same as in the first two quarters (of calendar year 2012) but substantially below where GDP was 12 months ago."

"This underscores the economy's challenges, and it will be a while before GDP growth is back at its trend rate. Our outlook is for a steady upturn in growth across the coming quarters before growth finally hits potential by the second half of 2014," Moody's said.

India had been growing at around 8-9 per cent before the global financial meltdown of 2008. The growth rate in 2011-12 slipped to a nine-year low of 6.5 per cent.

Finance Minister P. Chidambaram has said India's economy should expand by 5.5-6 per cent this fiscal.

"Recent economic data have been broadly in line with expectations," Moody's said and added that the corporate sector remains the weakest pocket of the economy.

"The corporate sector remains the weakest pocket of the economy, with sentiment weighed down by external weakness and, more important, the Congress-led government's cack-handed management and policy making in its second term," it added.

PTI

Read more about: moodys rating agency gdp
Story first published: Thursday, November 22, 2012, 14:49 [IST]
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more