India's annual economic growth probably held steady in the January-March quarter at 6.1% and the global economic slowdown, government policy paralysis and a record low currency suggest little chance of a pick up in the current quarter.
A poll of 31 economists produced a median forecast of 6.1%, unchanged from the growth of the October-December quarter. Forecasts ranged from 5.5% to 7.3%.
While 6.1% would be the envy of most developed nations, it is the lowest growth rate for India in almost three years. Growth slowed for seven successive quarters through the three months ended December 2011.
"Growth is constrained because of three main factors," said Leif Eskesen, economist at HSBC.
"Lax affects of monetary tightening, the spillover to domestic sentiment because of the weak global economic backdrop which is also hurting exports. And thirdly the persistence of policy paralysis is also hurting investor sentiment and that is of course hurting the investment cycle."
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