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| India's growth to revive in 2010: Barclays |
| Press Trust of India / New Delhi Mar 29, 2009, 19:54 IST |
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India's growth is expected to revive in 2010 in tandem with the global output that has more than caught up with falling demand, a report says.
According to Barclays Capital, India's real GDP (gross domestic product) growth for the calendar year 2009 will be four per cent before reviving to 6 per cent in 2010. It had fallen from 9.1 per cent in 2007 to 6 per cent in 2008, Barclays said.
In its research note 'Global Outlook: Green shoots have arrived', the investment banking unit of Barclays Bank said the stabilising consumption demand and falling inventories across the globe set the scene for a positive surprise.
"...At the same time, output is now falling significantly faster than demand, producing a massive decline in inventories that sets the stage for better economic readings," said Larry Kantor, research head, Barclays Capital.
The pace of output shedding has exceeded the drop in demand by a large margin, to the point where output is now well below demand, a situation that tends to bring its own reversal relatively quickly, Barclays said in its report.
Global industrial production is falling at a slower pace than in recent months and indications from Asia show that trade contracted only slightly on a month-on-month basis in February as tight credit conditions eased, it said.
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