Indian economy: Finance minister sees 5.5% growth
India’s once-booming economy has been hit by high interest rates.
NEW DELHI:
India’s economy logged around 5.5% growth in the last financial quarter, the Indian finance minister estimated on Saturday – a rate that could boost calls for lower interest rates to spur activity. India’s once-booming economy has been hit by high interest rates, Europe’s debt crisis that has slowed exports, and sluggish investment caused by domestic and overseas concerns about policy and corruption. Chidambaram said he expected official data, to be released next Friday, to show that the economy grew by “around 5.5%” in the three months to September 30. That would be down from 6.9% in the same second-quarter period a year earlier. “It goes without saying that we face a difficult situation,” Chidambaram said at a bankers’ conference, adding that the “global economy is still in crisis”.
Published in The Express Tribune, November 25th, 2012.
India’s economy logged around 5.5% growth in the last financial quarter, the Indian finance minister estimated on Saturday – a rate that could boost calls for lower interest rates to spur activity. India’s once-booming economy has been hit by high interest rates, Europe’s debt crisis that has slowed exports, and sluggish investment caused by domestic and overseas concerns about policy and corruption. Chidambaram said he expected official data, to be released next Friday, to show that the economy grew by “around 5.5%” in the three months to September 30. That would be down from 6.9% in the same second-quarter period a year earlier. “It goes without saying that we face a difficult situation,” Chidambaram said at a bankers’ conference, adding that the “global economy is still in crisis”.
Published in The Express Tribune, November 25th, 2012.