India economic growth rate for 2012-13 will slump to 5%: government

Feb 07 2013, 17:08 IST
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India's economic growth rate is estimated to be at an annual 5.0 per cent in the 2012/13 fiscal year. India's economic growth rate is estimated to be at an annual 5.0 per cent in the 2012/13 fiscal year.
SummaryEstimate is the worst of all growth projections issued by the govt and the RBI.

ANALYST, CREDIT AGRICOLE, HONG KONG

"India says FY13 GDP may rise 5 percent, well below the 5.5 percent consensus - this is negative for INR and overall sentiment in India. It may well push the INR OIS and bond yield curves down. Yesterday we closed our long INR position at a 4 percent profit and are waiting for some weakening before re-entering."

RUPA REGE NITSURE, CHIEF ECONOMIST, BANK OF BARODA, MUMBAI

"5 percent GDP growth for the full year is more in tune with reality. The industrial sector downturn has extended beyond anyone's expectation. In the first eight months of the year, for almost six months the manufacturing output has been negative.

Exports have been continuously declining, non-food credit growth is slowing while agricultural sector performance has also been sub-optimal.

After the government started showing a firm resolve to put things in place in mid-September, the series of data that has been released is also reflecting sustained deterioration across various growth indicators."

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