New Delhi, The government Friday officially downgraded the gross domestic product (GDP) growth rate to around 7.5 percent for the current fiscal, citing the domestic slowdown and international economic uncertainty. "The analysis of several data series and simple macro-econometric modeling lead us to forecast a GDP growth rate of 7.5 percent (plus or minus 0.25 percent) during 2011-12," said the mid-year economic review presented by Finance Minister Pranab Mukherjee to parliament. "We expect some revival next year, but the outlook remains mixed." The GDP in the first half of 2011-12 registered a growth rate of 7.3 percent over the first half of 2010-11. The growth rate of first quarter was 7.7 percent. In the quarter ending September, the GDP growth slowed to its slowest pace in over two years and was recorded at 6.9 percent. Latest data on the index of industrial production (IIP)-- a barometer of factory output -- showed industry production in for September at 1.9 percent, the slowest in over two years as rising interest rates and a slump in investments started to bite. The review pointed at the slow growth in manufacturing, construction and mining sector for ...
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The government needs to do much more to boost growth, business tycoons, top bankers and ministry officials said at the India Economic Summit held in Mumbai on Sunday. Reliance Industries chairman Mukesh Ambani called upon the governments to move faster to ensure economic development. “The central government and the state government need to align and move a lot faster. In today’s world of aspiration, people want everything to happen now.” Speaking at the 27th edition of the India Chapter of the World Economic Forum, Ambani also stressed on the need for better governance. Chief minister Prithviraj Chavan seemed to concur, but cited the difficulties. “The big challenge before the political system in India is managing the diversities in the country. It is very difficult to satisfy fast movers’ needs,” he said. Top industrialist Rahul Bajaj minced no words while opposing any bailout attempt by the government for the debt-ridden Kingfisher Airlines. “Those who die, must die,” he said. “I don’t see any logic of bailing out any private sector company, either for the sake of its employees or customers.” Drawing attention to high inflation and high ...
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