17032015Tue

Last updateTue, 17 Mar 2015 2pm

India revises down growth estimates

India has lowered its growth forecast for the second time in two weeks, in a sign that economic conditions continue to be challenging.

The statistical office has forecast growth of 5% for the year to 31 March 2013, just days after the Central Bank cut its forecast for the year to 5.5% from 5.8%.

A slowdown in exports has led to stagnant growth in the manufacturing sector whilst the country’s services sector also remains subdued, according to experts. 

Meanwhile, foreign investors have also been wary of entering the country amid a delay in key reforms.

That has led to concerns that India's growth rate may slow further in the coming months.

Prompted by these fears, policymakers have taken various steps to try and spur a fresh wave of economic growth.

The government has passed key reforms, opening up the retail and aviation sectors to foreign investors.

Last month, India's central bank, the Reserve Bank of India, cut its key interest rate to 7.75% from 8%, the first such move in nine months.

It also lowered the amount of money that banks need to keep in reserve, a move it said should provide 180bn rupees ($3.4bn; £2.1bn) of extra cash for them to lend.

Analysts said that while these moves had been positive, the downward revision in growth numbers was an indicator that the policymakers needed to do more.

"One of the messages that this forecast sends is that the government cannot afford to be complacent with its reform process," Vishnu Varathan, senior economist with Mizuho Corporate Bank told the BBC.

"It needs to keep pushing through with even more measures."

Mr Varathan added that the government needed to reduce its subsidy burden, improve infrastructure, and simplify and streamline the tax regime.

He said such moves would not only help increase revenue and reduce the deficit but also help shore up investor confidence, which he said had been dented recently.

"They key to get the economy going lies in getting investment growth back on track," Mr Varathan said.

 

BLOG COMMENTS POWERED BY DISQUS

 

Related Articles

Photo Gallery- Featured

  • latest Post

  • Most Read

Addmotor Electric Bike| Electric bike shop / electric bicycle shop Electric bike review| Electric trike| Fat tire electric bike| Best electric bike| Electric bicycle/E bike| Electric bikes for sale| Folding electric bike| Electric mountain bike| Electric tricycle Mid drive electric bike| Juiced Bikes Pedego Rad-Power

Tomtop| Online shop| Online Einkaufen

地產代理/物業投資| 租辦公室/租寫字樓| 地產新聞| 甲級寫字樓/頂手| Grade A Office| Commercial Building / Office building| Hong Kong Office Rental| Rent Office| Office for lease / office leasing| Office for sale| Office relocation

DecorCollection European design furniture| sofa hk| sofas| beds| coffee tables| dining tables| dining chairs| sideboards| furniture hk| Cattelan Italia| Koinor

International schools hong kong| Wycombe Abbey| private school hong kong| English primary school Hong Kong| primary education| boarding school Hong Kong| Wycombe Abbey School

邮件营销| 電郵推廣| 邮件群发软件| Email Marketing| 搜尋引擎優化 SEO

QR code scanner| inventory management system| labelling| Kiosk| warehouse management|