GDP seen growing at decade-low 5%
However, Reuters quoted a statistics ministry official as saying on Thursday that economic growth likely eased further to around 4.8% in the third quarter mainly as a result of deep cuts in government spending, The numbers are due on February 28, the day the Budget will be presented.
While recent reform measures like partial decontrol of diesel prices and the steps being taken to rev up investments in infrastructure have inspired Indian and domestic investors and reduced the threat of a sovereign rating downgrade, the debate over the economy’s structural bottlenecks have intensified after the latest GDP estimate. While the RBI had earlier said India’s growth potential has come down to around 7%, a senior International Monetary Fund official on Thursday said it would take India some tough decisions and several years before it can think of going back to a growth era of 8% and more, which was an easy walk through till a few years ago. The IMF had on Wednesday said India’s growth rate would drop to 5.4% this year.
The RBI in its outlook released on January 28 projected the GDP growth in 2012-13 to be 5.5%, while finance minister P
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