Macroeconomic Forecast India

September 2006 | Macroeconomic Forecasts

BMI View: Higher inflation and interest rates will cause growth to moderate as the year progresses, but we still expect an average of 8.3% for 2006/07, which will be the fourth consecutive year that growth has been above 7.5%. A large emerging consumer class will ensure that consumer demand remains well entrenched, and there is still a high degree of foreign investor optimism surrounding India. Furthermore, India's economy is largely domestically driven, with exports representing just 24.7% of GDP, meaning it should be well insulated from the expected slowdown in global demand in the second half of 2006. Going forward

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