Indian economy to grow at 7.7% in 2013:OECD

[Abingdonboy]

London: India’s economic growth is likely to rise to 7.7 percent in calendar year 2013, but growth rate through much of this year is likely to remain subdued, OECD said on May 22.

According to the Organiza-tion for Economic Cooperation and Develop-ment’s (OECD) latest Economic Outlook, India’s growth rate is likely to slow to 7.1 percent in 2012 from 7.3 percent in 2011, but would inch up to 7.7 percent in 2013.

“The government’s fiscal consolidation plans this year would help reduce inflation, narrow the current account deficit and promote more balanced growth,” OECD said.

Economic worries over the past few months like rupee depreciation, high inflation and current account deficit have acted as big dampeners for the India growth story, which was seeing a growth rate of 8-9 percent during pre-global crisis.

The Indian economy has slowed owing to “weakness” in manufacturing and investment spending. Meanwhile, softening external demand and rising imports have resulted in a widening current account deficit (CAD).

CAD arises when a country’s imports are more than exports. CAD stood at around $45.9 billion, or 2.7 percent of the GDP in FY11.

The CAD is projected to be around four percent (or $77 billion) of the national GDP in FY13.

Regarding inflation, OECD said although inflation has moderated from double-digit rates, it remains relatively high and expected increases in regulated prices of some oil-related products will add to price pressures which will continue to weigh on household consumption.”

GDP growth across the OECD is projected to slow from an annual rate of 1.8 percent in 2011 to 1.6 percent in 2012, before recovering to 2.2 percent in 2013.

“With slow growth, high unemployment and limited room for maneuver regarding macroeconomic policy space, structural reforms are the short-run remedy to spur growth and boost confidence,” OECD Secretary General Angel Gurria said

Indian economy to grow at 7.7% in 2013: OECD

 

[Skull and Bones]

Not bad. Could have been better though.

 

[Abingdonboy]

Not bad. Could have been better though.

Hope for 6.7-.8% anything better is a bonus.

 

[kawaraj]

May 22, 2012 prediction from OECD and how wrong it is.

FY 2013 current for 7.1 percent reality dip it to 5 percent. Next FY of 7.7 could just translate to 5.6 percent.

Why would you bring up this outdated wrong "guess"?

London: India’s economic growth is likely to rise to 7.7 percent in calendar year 2013, but growth rate through much of this year is likely to remain subdued, OECD said on May 22.

According to the Organiza-tion for Economic Cooperation and Develop-ment’s (OECD) latest Economic Outlook, India’s growth rate is likely to slow to 7.1 percent in 2012 from 7.3 percent in 2011, but would inch up to 7.7 percent in 2013.

“The government’s fiscal consolidation plans this year would help reduce inflation, narrow the current account deficit and promote more balanced ....

 

[Not Sure]

Everyday there's a new source and a new number on the economic growth.

Now I am at complete loss on what would be the actual growth rate of India.

 

[Abingdonboy]

May 22, 2012 prediction from OECD and how wrong it is.

FY 2013 current for 7.1 percent reality dip it to 5 percent. Next FY of 7.7 could just translate to 5.6 percent.

Why would you bring up this outdated wrong "guess"?

News is from this week AFAIK.

 

[cirr]

The OECD forecast is out of date and wide off the mark。The following is far more pertinent：

Nov industrial output contracts 0.1%
Last updated on: January 11, 2013

Nov industrial output contracts 0.1% - Rediff.com Business

Any suggestion that the Indian economy has bottomed out is total hogwash。

 

[farhan_9909]

this year below 6%

next year below 7%.

7.7% is possible in 2015-16

 

[Chinese-Dragon]

You want to see how fickle the OECD is?

Here is an updated forecast from them, from 1 month ago:

India to see 4.5 per cent GDP growth this fiscal: OECD - Economic Times

 

[Protocol man]

7.7% my nut sack.
More like 0.7%

Indian economy is in serious trouble, inflation is still very high, despite a collapsed currency their exports have fallen, deficits are still very high, India is still a net debtor country.

 

[xuxu1457]

By the way, what's Indian GDP in 2012?? in RS and $