Wednesday, December 19, 2007

India's growth rate may slow down: Oxford Analytica

Noting that forecasts of gross domestic product growth for fiscal 2007-08 (ending March) are being revised downwards to 8.4-8.6 per cent (growth in 2006-07 reached 9.4 per cent), Oxford Analytica says this reflects the impact of a credit squeeze initiated by the Reserve Bank of India to combat inflation, which reached 6 per cent earlier this year.

A summary of analysis by Oxford Analytica, which claims to have 1000 scholars, was posted on the website of Forbes magazine.

On the positive side, it says, growth in agriculture, a perennial under-achiever, may accelerate following a favourable monsoon and there are also indications that a period of "jobless growth" is over, with rapid expansion in employment opportunities catching up with the rising rate of participation in the labour force.

A major positive sign is fast growth of capital goods industries and an expansion of infrastructure, which would support the economy in the long run. Besides, foreign portfolio flows are strong which are adding to local resources.

A recession in developed economies might increase outsourcing work to India, it says, noting that services, which account for over half of economy, continue to grow around 8 to 10 per cent.

Added to these are remittance flow of between USD 25 billion and USD 28 billion which help the current account deficit to close to 1-2 per cent of GDP.

2 comments:

www.ShareTipsInfo.com Team said...

Indian stock market

Hi Everyone.

Your blog is nice and informative. We think your visitors will like this posting.

We all know that Indian stock market has become volatile now a days. One day its going up and another day its coming down. So we all should like to know
what is the reason for it. As in the last post we have mentioned that FII are the main reason, but now to there are few more factors adding to worries, they are:-

1. FII profit booking.

2. Political issue - Indo-US nuclear issue.

3. 25 Basis cut which was expected by US people of atleast 50 basis.

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Regards

SHARETIPSINFO Team

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Anonymous said...

Dear All,

Your blog is nice and informative. We think our post will be quite useful and informative for your visitors. We have witnessed Sensex and Nifty showing quite handsome upward rally around new year time. But now on 2nd Jan again Indian stock marketis sluggish and is struggling to come up. We have posted in recent post that we can expect market to come down in between 26December-07 to
5- Jan-08.


Now on 2nd Jan FII has reentered into the market and game of seesaw with Nifty
graphs has started again.

We advise everyone whether they are working in Indian stock market or any other expect high volatility in all markets as sentiments of one
market effects other.

Always remember less profit or no profit is better then loss

Regards

Sharetipsinfo team