Economy / India
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Macroeconomic Forecast India
July 2008 | Macroeconomic ForecastsSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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BMI View: The Indian economy expanded by 8.8% y-o-y in Q108 (calendar year), on the back of strong momentum in the services sector, bringing full-year growth in FY2007/08 to 9.0%. We believe the economy will cool considerably in FY2008/09 as high inflation and monetary tightening make a dent in domestic demand. The growing fiscal and current account deficits will weigh on the rupee, but we believe the Reserve Bank of India will be loath to allow anything but a marginal depreciation of the currency until inflation is back under control.