India economic growth rate for 2012-13 will slump to 5%: government
The latest estimate is the worst of all growth projections issued by the government and the central bank.
SHUBHADA RAO, CHIEF ECONOMIST, YES BANK, MUMBAI:
"The imputed growth for second half FY13 is at 4.7 percent. In our opinion, it is likely to be revised upward.
The main reasons for this considerable slowdown is a sharp correction in services at 6.6 per cent, led by trade and finance. The base effect in Q4 is positive, despite which, the numbers are projected lower which implies sharp sequential worsening of economic activity.
We have been anticipating marginal improvement in Q4 on the back of a small pick up in investments."
UPASNA BHARDWAJ, ECONOMIST, ING VYSYA BANK, MUMBAI
"While the slowdown in overall GDP estimates have been widely expected, the slowdown in services, particularly the trade, hotels, transport, communication category has been sharper than anticipated.
Moreover, the sharp slowdown clearly points towards continued slack in consumption demand, which is expected to keep the core inflation under check going forward".
PHANI SEKHAR, FUND MANAGER, ANGEL BROKING, MUMBAI
"It might have small impact but would not impact much as this fiscal year is almost over. People are focusing on next fiscal year.
It'll be interesting to see when actual data comes if there is any structural driver that is lowering GDP numbers and whether rate cuts can prevent that."
A. PRASANNA, ECONOMIST, ICICI SECURITIES PRIMARY DEALERSHIP LTD, MUMBAI
"The estimate seems to be on the lower side. It is surprising that construction sector