India’s ‘slowdown’ may be the world’s envy

HINDUSTAN TIMES

New Delhi, December 11, 2008

By SANDEEP SINGH

The world economy may be slowing down to less than 2.5 per cent, but in relative terms the “slowdown” in India would be something the world would envy. Overnight, India has become the second-most powerful engine of global growth, after China.

Even after moderating their GDP growth projections, estimates by economists show that the Indian economy could grow by between 6.3 per cent and 8 per cent, with World Bank and foreign investment banking firms being the pessimists and Indian research organisations and International Monetary Fund the optimists.India’s economic growth may fall short of Reserve Bank of India’s 7.5-8 per cent forecast. “All indications are that it (GDP forecast) may be revised downwards,” RBI governor D. Subbarao said on Wednesday. He warned 2009-10 could be more painful.

With global trade expected to contract in 2009, the World Bank on Wednesday, in a report titled ‘Global Economic Prospects’, projected that the Indian economy would grow at 5.8 per cent in 2009, down from 6.3 per cent estimated for 2008.It, however, raised the estimate for 2010 to 7.7 per cent. more