As of this week, the forecast for India’s upcoming fiscal year has dipped from 7.85% at the start of the year to 5.7-5.9%. At present the growth rate stands at 5.4% and is expected to continue through the first half of 2013.
The Mid-Year Economic Analysis tabulated by the Indian Parliament shows a rise in growth rates while economists have cut predictions to less than 5%. Nevertheless, the next year is not likely to see a rise to pre-global crisis figures.
Finance Minister P. Chidambaram continues to urge the central bank to lower interest rates in the hope of boosting the economy. The bank continues to stay steady on interest rates.
India’s cut in growth rates puts Asia in place of the third-largest economy with the worst annual performance in a decade.