Macroeconomic Forecast India

April 2008 | Macroeconomic Forecasts

BMI View: For faster expansion, the economy needs a much more benign monetary policy environment than it currently has, and in the end this boils down to resolving the core problem of weak infrastructure. Without a major overhaul in the country's infrastructure development programme - which can now only be feasibly introduced by the next government - authorities will be forced to choose between keeping a lid on prices and higher GDP growth rates. For now, we see real GDP growth slowing from 9.4% last year to 8.5% in FY2007/08, and further to 7.9% in FY2008/09.

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