Economy / India
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Growth Momentum Maintained
September 2006 | Market StrategySorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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India's economy is still growing at a very rapid rate, with GDP expanding by 8.9% y-o-y in the first quarter (April-June) of FY2006/07. While this represents a slight slowdown on the blistering 9.3% growth in the last quarter of FY2005/06, it is still well above the 5.8% trend of the past 20 years, and the 7.0% rate that we expect India to sustain over our 5-year forecast period. The economy will inevitably cool as the year progresses, particularly as the effects of monetary tightening and higher inflation begin to bite, but we believe that growth can still reach 8.3% for