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Thursday, October 17, 2013

India's economic recovery in sight: Moody’s

India's economic recovery in sight: Moody’s

COIMBATORE: The current economic slowdown would bottom out and a recovery is in sight, according to Moody's Analytics, a division of Moody's Corporation. The agency has, however, cautioned that the days of high growth are gone and the country would have to settle for a more modest growth rate.

"A combination of good luck and modestly better policies will drive steady acceleration in economic activity, although the upturn will be patchy and difficult to see for six months or so. The days of 8% GDP growth are gone," said Glenn Levine, senior economist, Moody's Analytics.

"We expect the Indian economy to hit its potential growth rate of 6.5% by the second half of 2015," he said. "India's economy has been slowing for the past three years but is nearing the bottom of the current cycle," Moody's said. "Weak investment and consumer demand have slowed India's growth over the past three years," it said. GDP (gross domestic product) growth by production slowed to 4.4% year-on-year (y-o-y) in the second quarter and looks to be maintaining this pace through the rest of 2013, the agency said.

 


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