Began tight monetary policy pursued by India to combat inflation and that sacrifice was considered necessary for growth, impact on economic activity in a country that was dreamed of until recently the restoration of the power of growth before the recession.
After he was seeking to regain the 9% rate of "magic" of annual growth by March 2012, the percentage lost since the global financial crisis, was forced on the third force in Asia to the economic lowered its ambitions.
After minor amendments which were performed for the annual forecast in recent months, announced that the Economic Committee of the Prime Minister on Monday it now expects to reach a growth rate of 8.2%, which is also lower than the rate of 2010-2011 (+8.5%).
In turn, reviewed the Ministry of Finance recently officially goals, capitalizing on the proportion of 8.2%. But some independent economists sounded less optimistic and likely to only increase the growth rate of 7.3%.
Attribute this decline and the government seeks to reduce the will, to the tight monetary policy to a large extent, in order to curb inflation, which approached an average of 10% after it was in June / June 9, 44%, the highest percentage in Asia and even in major economies, except Russia.
Has raised the Reserve Bank of India, the central bank, last week for the eleventh time in less than 18 months, key interest rates.
He warned the finance minister Pranab Mukherjee warned of the need to expect more tightening to stop the rising prices because the country has not yet reached "the end of the tunnel" in this area.
The Chairman of Committee for the Economic CNN. Rangarajan Monday that the central bank will maintain this policy until the monetary inflation, "signals the final of the slowdown." It is expected that the inflation rate approaching from 6.5% by March 2012.
If the government considers this to be necessary to restore growth in the long term, several key indicators show a slowdown of economic activity in a country where foreign investors see a few years ago and a strategy.
Thus, progress has been registered handicrafts sector, which represents 75% of industrial production, in July the lowest level in 20 months, according to the index of the Bank of mild virus. S. Me. C-based investigation included 500 companies.
Commented chief economist at HSBC. S. Me. C - India Lev Askizn on that by saying that "the pace ranging place also in July because of lower production and new orders." But he also considered it "good news because it should control inflation," and stop the excessive growth of the Indian economy.
Therefore, to the automotive sector, which is the main indicator to the health of the economy, it appears the other signals, as the slowing car sales recorded in June and the weakest pace of progress since the two years.
The largest maker of cars, "Maruti Suzuki's" Monday it was recorded in July the largest decline in sales since its launch in the Indian market in 1983. Where sales fell by 25.3% over the year.
But the new forecast to grow by 8.2%, however, make India retains second place among the countries that achieved the highest growth rates, after China.
But it remains far from achieving the target of 10%, the threshold at which enable the country to reduce the level of poverty according to government accounts.
After he was seeking to regain the 9% rate of "magic" of annual growth by March 2012, the percentage lost since the global financial crisis, was forced on the third force in Asia to the economic lowered its ambitions.
After minor amendments which were performed for the annual forecast in recent months, announced that the Economic Committee of the Prime Minister on Monday it now expects to reach a growth rate of 8.2%, which is also lower than the rate of 2010-2011 (+8.5%).
In turn, reviewed the Ministry of Finance recently officially goals, capitalizing on the proportion of 8.2%. But some independent economists sounded less optimistic and likely to only increase the growth rate of 7.3%.
Attribute this decline and the government seeks to reduce the will, to the tight monetary policy to a large extent, in order to curb inflation, which approached an average of 10% after it was in June / June 9, 44%, the highest percentage in Asia and even in major economies, except Russia.
Has raised the Reserve Bank of India, the central bank, last week for the eleventh time in less than 18 months, key interest rates.
He warned the finance minister Pranab Mukherjee warned of the need to expect more tightening to stop the rising prices because the country has not yet reached "the end of the tunnel" in this area.
The Chairman of Committee for the Economic CNN. Rangarajan Monday that the central bank will maintain this policy until the monetary inflation, "signals the final of the slowdown." It is expected that the inflation rate approaching from 6.5% by March 2012.
If the government considers this to be necessary to restore growth in the long term, several key indicators show a slowdown of economic activity in a country where foreign investors see a few years ago and a strategy.
Thus, progress has been registered handicrafts sector, which represents 75% of industrial production, in July the lowest level in 20 months, according to the index of the Bank of mild virus. S. Me. C-based investigation included 500 companies.
Commented chief economist at HSBC. S. Me. C - India Lev Askizn on that by saying that "the pace ranging place also in July because of lower production and new orders." But he also considered it "good news because it should control inflation," and stop the excessive growth of the Indian economy.
Therefore, to the automotive sector, which is the main indicator to the health of the economy, it appears the other signals, as the slowing car sales recorded in June and the weakest pace of progress since the two years.
The largest maker of cars, "Maruti Suzuki's" Monday it was recorded in July the largest decline in sales since its launch in the Indian market in 1983. Where sales fell by 25.3% over the year.
But the new forecast to grow by 8.2%, however, make India retains second place among the countries that achieved the highest growth rates, after China.
But it remains far from achieving the target of 10%, the threshold at which enable the country to reduce the level of poverty according to government accounts.
