'Worst yet to come for Indian economy'

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Posted: Friday, Mar 20, 2009 at 1534 hrs IST
Updated: Friday, Mar 20, 2009 at 1534 hrs IST

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New Delhi: The positive movement of the stock market and mixed economic indicators are expected to be short-lived and the worst is not over for the Indian economy, according to Moody's.

"The positive sentiment is expected to be short-lived, as India essentially only started feeling the pinch of the global downturn in the December quarter and the worst is yet to come," Moody's economy.com said in a research report.

The industrial production growth slipped into negative territory for the third time in the current fiscal by 0.5 per cent in January while exports also dropped by 15.9 per cent on a year on year (yoy) basis in the month.

However, expectations of further monetary easing measures by the Reserve Bank increased after inflation fell to 0.44 per cent for the first week of March against 2.43 per cent a week ago.

Since October, RBI has infused over Rs 4,00,000 crore in the system by cutting ratios and signalling interest rate cut.

There is also some positive news from Dalal Street as the Bombay Stock Exchange benchmark index Sensex surged 245 points in this week.

Moody's added that the Indian economy is likely to grow by 6.3 per cent with some downward risk in the current fiscal against government estimate of 7.1 per cent.

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» Indian Economy

Posted by Ajai Nuka on 2009-03-21 21:38:43.716167+05:30
I am with Banu Priya that the country would prosper only when we have selfless, young and educated politicians heading the India Incorporate and not the likes of Manmohan or the aspiring Mayawati. The older generation can be at the helm of the affairs heading the constitution as we need them for advise. However the posts of Prime Minister and Central Ministers should be held by young, educated personalities. I hope this change of thought would begin from like minded young professionals of India, the ones who strive to put the Indian Business on steam.

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» Indian Economy

Posted by Banu Priya on 2009-03-21 08:09:10.193807+05:30
Indian economy will grow only when corruption is rooted out of India and constitution is changed to have education requirement for politicians and a age limit of 50. If all these old grey hair heads like Manmohan and Prathiba patil rule the country, economy will be shambles for the next 100 years and we will not see any light at the end of the tunnel. India needs young educated blood who can take bold steps and turn the country around.ThanksBanu priya.New York Times.

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» Worst yet to come for Indian Economy

Posted by Shadi Katyal on 2009-03-21 02:35:32.505127+05:30
It was only few weeks your paper was quoting Indian govt officials that India will not suffer and I wrote at that juncture that it is time Indians must wake up and align with world. Why we live in our own dreams and thus have ruined the economic conditiosn.Granted India has only 1% of world Trade share, which has been dwindling every year, what makes our Minsiters make such statments.One starts wondering when oh when is India going to wke up to the realities of world Trade and Globalisation.We cannot walk around with coloured glasses and not face the truth.India has failed in all aspects because of lack of even common knowldge of world trade and industrialisation.

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'Worst yet to come for Indian economy'

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