Macroeconomic Forecast India

BMI View: We have raised our FY06/07 growth forecast to 8.7%, from a previous 8.3%, in response to strong data for the first half of the year. We still, however, maintain our view that growth will cool to 7.3% in FY07/08 as measures to rein in loose monetary conditions take effect. While we believe that the cumulative effects of India's reforms since 1991 have successfully increased India's trend growth rate, it is still probably closer to the 7.5% average that we anticipate over the last four years of our forecast

To read the full article, please choose one of the following options: