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Indian economy is slowing down -- Fitch Ratings
PRESS TRUST OF INDIA
Calcutta, Oct 19: Fitch Ratings India (FRI) on Thursday warned against the slowing down of the Indian economy as is evident from lower capital formation, inadequate credit expansion and a low tax base. "The economy is suffering from inadequate capital formation, which is imperative for future growth," the FRI said in its latest 'Economy Update' report.For four consecutive months since May, 2000, the capital goods sector recorded negative growth rates, whereas the growth recorded last year was 4 per cent. "What is even more alarming is that a combination of a likely lower domestic savings rate during the current period and a much less than desired FDI inflow can act as a major hindrance in meeting India's investment requirement, given the pitiable state of the country's infrastructure," the report said. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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