Economic growth (gross domestic product / GDP), annual (year-on-year) during the quarter II/2010 India is estimated to reach 10%.
“Based on constant prices, economic growth in India could rise to 10% from the previous figure of 3.7% reported,” the report obtained by the Barclays Capital business today.
This week, the Ministry of Statistics Program Implementation India (Ministry of Statistics and Program Implementation / MOSPI) India announces annual economic rate of 8.8% and based on constant prices by 3.7%.
Related to this, Barclays Capital said the quarter II/2010 is strong momentum in the services sector on the company. Meanwhile, private consumption provides the greatest contribution to the growth of GDP, rose to 3.8% from 2.6% in the quarter I/2010.
The report says there is weakening demand for investment and export growth in line with the decline in industrial products. Contribution of exports to the economy next year are expected to fall, but still in positive growth.
Although there is slowing export demand, Barclays Capital does not change the view that India will produce big growth. The rate of Indian economy will continue to reach the projection, that is equal to 8% in 2010 and 2011 the government predicted at 8.5% to 8.75%.
India’s central bank (Reserve Bank of India / RBI) will continue to make managing inflation a priority policy. Barclay expect RBI increased two types of central bank’s benchmark interest rate by 25 basis points on Sept. 16 each into 6% and 4.75%.
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