Thursday 4 October 2012

ADB’S FORECAST FOR INDIA

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ASIAN DEVELOPMENT BANK CUTS GROWTH FORECAST FOR INDIA TO 5.6%

The Economic Times, October 4, 2012

NEW DELHI: In line with a barrage of downgrades over the last few months by various rating agencies, the Asian Development Bank on Wednesday slashed its growth forecast for India to 5.6% this fiscal compared to 7% reported earlier, citing sluggish global demand and low agricultural production due to weak monsoon.

Recently, India has suffered growth revisions from all quarters with a majority of private analysts revising the growth in the range of 5.5%.

Adding to market woes, even the Prime Minister's Economic Advisory Council confirmed the growth crawl and pegged it 6.7% down from 7.6% assessed in February.

"The delayed monsoon, coupled with weaknesses in the agricultural supply chains and rising costs of fertilizers and irrigation, are likely to result in subdued agricultural growth and sustain pressure on food prices," the ADB report stated.

(...) [article here]

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