Tuesday, June 14, 2011

World Bank forecast : India’s FY12 growth will slip to 8.2 %

The World Bank has confirmed the slowdown theory on the growth of India's economy.

According to the multilateral lending agency, India's growth would moderate to 8.2 % this fiscal against 8.5 % a year ago, as high inflation had cut into disposable incomes and hence demand.

The World Bank, in its report on Global Economic Prospects, stated that the slowdown had stemmed from a moderation in domestic demand, as elevated inflationary pressures had reduced disposable incomes and household spending, and as more restrictive monetary conditions added to the dampening of investment activity.

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