India’s growth could take a hit this year: study
14 Jan 2011
India's growth momentum might see a slowdown in 2011 and its foreign trade could feel the effects of the downturn in global economic activity, a strategic focus study published by Switzerland's Bank Sarasin's research wing has said.
The report from the Swiss private bank said consumption and capital expenditure remain the key drivers of growth and continuing robust domestic growth in the country could cushion the Indian economy from weaker exports.
It said the downturn notwithstanding, India should be one of the growth engines in 2011 for both Asia and the world.
According to the study, the Indian economy will have a soft landing in 2011 with the GDP growth rate likely to fall back to 7.5 to 8.0 per cent in 2011 from 8.5 to 9.0 per cent.
It also said that upswing in India is losing momentum.
"Since economic growth was supported by robust domestic demand in the 2009 global recession, the upturn in 2010 was less spectacular than in the heavily export-oriented economies such as Singapore and Hong Kong," it said.