S&P lowers India's GDP growth forecast

S&P also cut Chinas GDP growth forecast to 7.5%t and that of rest of Asia

Despite a slew of policy measures announced by the prime minister last week, rating agency Standard & Poor's (S&P) today lowered India's to 5.5%.

"The lack of monsoon rains has affected India, for which agriculture still forms a substantial part of the economy. Additionally, the more cautious investor sentiment globally has seen potential investors become more critical of India's policy and infrastructure shortcomings," S&P said in a press statement.

Prior to S&P, rating agency Crisil too had slashed its forecast for India's GDP growth to 5.5% from 6.5% for this fiscal. After eight successive quarterly decline, India's GDP for April-June quarter grew at 5.5% against 5.3% during the previous quarter.

S&P has also cut China’s GDP growth forecast to 7.5% and that of rest of Asia.

"We have lowered our base case forecasts of 2012 real GDP growth by about half a percentage point for to 7.5%; Japan to 2%; Korea (Republic of) to
2.5%; Singapore (Republic of) to 2.1%; and Taiwan to 1.9%," said S&P credit analyst Andrew Palmer.

Last week, the Indian government allowed foreign airlines to invest up to 49% in local ventures and multi-brand retailers like Walmart to invest up to 51 percent in local stores.

image
Business Standard
177 22
Business Standard

S&P lowers India's GDP growth forecast

S&P also cut Chinas GDP growth forecast to 7.5%t and that of rest of Asia

Kalpana Pathak   |  Mumbai 



Despite a slew of policy measures announced by the prime minister last week, rating agency Standard & Poor's (S&P) today lowered India's to 5.5%.

"The lack of monsoon rains has affected India, for which agriculture still forms a substantial part of the economy. Additionally, the more cautious investor sentiment globally has seen potential investors become more critical of India's policy and infrastructure shortcomings," S&P said in a press statement.



Prior to S&P, rating agency Crisil too had slashed its forecast for India's GDP growth to 5.5% from 6.5% for this fiscal. After eight successive quarterly decline, India's GDP for April-June quarter grew at 5.5% against 5.3% during the previous quarter.

S&P has also cut China’s GDP growth forecast to 7.5% and that of rest of Asia.

"We have lowered our base case forecasts of 2012 real GDP growth by about half a percentage point for to 7.5%; Japan to 2%; Korea (Republic of) to
2.5%; Singapore (Republic of) to 2.1%; and Taiwan to 1.9%," said S&P credit analyst Andrew Palmer.

Last week, the Indian government allowed foreign airlines to invest up to 49% in local ventures and multi-brand retailers like Walmart to invest up to 51 percent in local stores.

RECOMMENDED FOR YOU

S&P lowers India's GDP growth forecast

S&P also cut Chinas GDP growth forecast to 7.5%t and that of rest of Asia

Despite a slew of policy measures announced by the prime minister last week, rating agency Standard & Poor's (S&P) today lowered India's GDP growth forecast to 5.5%.

Despite a slew of policy measures announced by the prime minister last week, rating agency Standard & Poor's (S&P) today lowered India's to 5.5%.

"The lack of monsoon rains has affected India, for which agriculture still forms a substantial part of the economy. Additionally, the more cautious investor sentiment globally has seen potential investors become more critical of India's policy and infrastructure shortcomings," S&P said in a press statement.

Prior to S&P, rating agency Crisil too had slashed its forecast for India's GDP growth to 5.5% from 6.5% for this fiscal. After eight successive quarterly decline, India's GDP for April-June quarter grew at 5.5% against 5.3% during the previous quarter.

S&P has also cut China’s GDP growth forecast to 7.5% and that of rest of Asia.

"We have lowered our base case forecasts of 2012 real GDP growth by about half a percentage point for to 7.5%; Japan to 2%; Korea (Republic of) to
2.5%; Singapore (Republic of) to 2.1%; and Taiwan to 1.9%," said S&P credit analyst Andrew Palmer.

Last week, the Indian government allowed foreign airlines to invest up to 49% in local ventures and multi-brand retailers like Walmart to invest up to 51 percent in local stores.

image
Business Standard
177 22

More News

  • Railways raises short distance coal freight Coal imports in July dip 11% to 18 MT
  • Modi to chair meeting on island development soon Modi to chair meeting on island development soon
Widgets Magazine

Widgets Magazine

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard