By Mallika Kapur, CNN
"(CNN) -- India's economy registered a slight slowdown in its growth in the first quarter (April to June) this fiscal year. GDP figures came in at 7.7% -- roughly in line with expectations, but lower than the 7.8% growth last quarter.
This is the slowest pace of economic growth in six financial quarters. Analysts largely attribute the slowdown to recent monetary tightening.
India's central bank, the Reserve Bank of India, has raised interest rates 11 times in the last 18 months in an attempt to curb double-digit inflation.
The rate hikes have led to a slowdown in domestic consumption, which is reflected in India's auto industry. Auto sales in India fell in July for the first time in nearly 3 years.
Chief economist D.K. Joshi of Indian research and ratings agency Crisil said the GDP figures were predictable.
He raised a red flag about the poor performance of the mining sector, saying it could lead to a slowdown in manufacturing. He also said a sharp fall in construction activity in India is a worry, as this sector employs a vast number of India's population.
The GDP figures come amid an ant-corruption campaign that has gripped the country in recent days. Investors are waiting to see what impact the movement led by anti-graft campaigner Anna Hazare will have on the economy -- dubbed "Annanomics."
Industry leaders say they hope the anti-corruption momentum will spur growth by creating a transparent environment for investors.
"It could be a key game changer for long term growth," Joshi said. India has been rocked by a number of scams in recent months, including one in the telecom sector, which has cost the country billions of dollars.
Stock market reaction to India's GDP growth figures was muted."
Since 2005 western economic gurus, the Economist etc are predicting that India would surpass China in economic growth in 2011 and 2012, that India has competitive edge over China, that India's economic growth is more sustainable etc but what we see today. India is still lagging behind China in all terms- economic growth, social development index, literacy rate, basic health care etc-and India is still the 10th world economy behind debt struggling and rioting UK, debt defaulting Italy, Brazil etc. What we see today-China still stands good and it is actually the second world largest economy recording a record trade surplus again in August 2011. Western economic gurus have also predicted doom and armageddon for China in 2011, that China's real estate bubble would explode and that social protests would emerge in all parts of the country threatening the legitimity of the Chinese Communist party and that social networking facebook and twitter would trigger further protests similar to the Arab spring revolution amid CIA instigating such protests on facebook and twitter. The Western Governments have also warned China not to block facebook, twittter and blackberry as these are democratic social networks. But what have we seen in the Summer 2011? The doom and armageddon have reached the EU and US instead of China. It is the US, Greece, Italy, Spain, UK which are facing the worst economic crisis and they have exploded due to the debt crisis; that it is the UK which has witnessed its own Arab spring whereby the UK Government is using anti democratic measure by putting a ban on blackberry and track down users; that it is India which has witnessed massive protests against ramping corruption. At the same time, China is silently and steadily rising and it is still going stronger and stronger as the EU and shining India fade in debt and corruption.
"(CNN) -- India's economy registered a slight slowdown in its growth in the first quarter (April to June) this fiscal year. GDP figures came in at 7.7% -- roughly in line with expectations, but lower than the 7.8% growth last quarter.
This is the slowest pace of economic growth in six financial quarters. Analysts largely attribute the slowdown to recent monetary tightening.
India's central bank, the Reserve Bank of India, has raised interest rates 11 times in the last 18 months in an attempt to curb double-digit inflation.
The rate hikes have led to a slowdown in domestic consumption, which is reflected in India's auto industry. Auto sales in India fell in July for the first time in nearly 3 years.
Chief economist D.K. Joshi of Indian research and ratings agency Crisil said the GDP figures were predictable.
He raised a red flag about the poor performance of the mining sector, saying it could lead to a slowdown in manufacturing. He also said a sharp fall in construction activity in India is a worry, as this sector employs a vast number of India's population.
The GDP figures come amid an ant-corruption campaign that has gripped the country in recent days. Investors are waiting to see what impact the movement led by anti-graft campaigner Anna Hazare will have on the economy -- dubbed "Annanomics."
Industry leaders say they hope the anti-corruption momentum will spur growth by creating a transparent environment for investors.
"It could be a key game changer for long term growth," Joshi said. India has been rocked by a number of scams in recent months, including one in the telecom sector, which has cost the country billions of dollars.
Stock market reaction to India's GDP growth figures was muted."
Since 2005 western economic gurus, the Economist etc are predicting that India would surpass China in economic growth in 2011 and 2012, that India has competitive edge over China, that India's economic growth is more sustainable etc but what we see today. India is still lagging behind China in all terms- economic growth, social development index, literacy rate, basic health care etc-and India is still the 10th world economy behind debt struggling and rioting UK, debt defaulting Italy, Brazil etc. What we see today-China still stands good and it is actually the second world largest economy recording a record trade surplus again in August 2011. Western economic gurus have also predicted doom and armageddon for China in 2011, that China's real estate bubble would explode and that social protests would emerge in all parts of the country threatening the legitimity of the Chinese Communist party and that social networking facebook and twitter would trigger further protests similar to the Arab spring revolution amid CIA instigating such protests on facebook and twitter. The Western Governments have also warned China not to block facebook, twittter and blackberry as these are democratic social networks. But what have we seen in the Summer 2011? The doom and armageddon have reached the EU and US instead of China. It is the US, Greece, Italy, Spain, UK which are facing the worst economic crisis and they have exploded due to the debt crisis; that it is the UK which has witnessed its own Arab spring whereby the UK Government is using anti democratic measure by putting a ban on blackberry and track down users; that it is India which has witnessed massive protests against ramping corruption. At the same time, China is silently and steadily rising and it is still going stronger and stronger as the EU and shining India fade in debt and corruption.
