Indian Economy Is Likely To Record A Growth Rate - Jan 20, 2009

The Indian economy is likely to record a growth rate of 7.4 per cent in the last quarter of the 2009 fiscal as well as in the entire fiscal, a report by CMIE, said.

"We expect the fourth-quarter to register a real GDP growth of 7.4 per cent. Fiscal 2008-09 will thus end with a growth of 7.4 per cent", the Centre for Monitoring Indian Economy (CMIE) said. It however, expects the GDP for the third quarter of FY''09 to stay at around 6.7 per cent, substantially lower than the 7.8 per cent reported during previous two quarters.

The Reserve Bank and Centre together over the past two months have partially repaired the damages caused by the break-down of the international financial markets, the report said. It also added that the "liquidity was pumped in and interest rates were reduced by the RBI". The report also said, global financial markets collapse in October dried up the international finance trade, leading to a fall in exports as well as the Index of Industrial Production (IIP) and cargo movement, the report said. The economy deterioration in the third quarter is almost entire and caused due to the global liquidity crisis, CMIE said.