India's gross domestic product (GDP) growth rate for the next fiscal is likely to be around seven per cent, according to Arun Maira, management advisor, writer and senior advisor to The Boston Consulting Group and UN Global Compact.
Also, further cut in interest rate is expected in the coming days, as inflation has been easing, said Maira, at an interactive session organised by the Confederation of Indian Industries (CII) in Kolkata on Monday.
Earlier, several global organisations had also projected India's GDP growth to be between 6-7 per cent. The International Monetary Fund (IMF) has reduced India's gross domestic product (GDP) growth estimate for 2009 to 6.3 per cent. In 2007-08. Goldman Sachs, which predicted 6.7 per cent GDP growth this year, expects it to moderate to 5.8 per cent in 2009-10.
Citi India expects the Indian economy to grow at 5.5 per cent next year against 6.8 per cent this year. The Reserve Bank of India (RBI), which in its mid-term review of the annual policy statement in October, projected a growth rate of 7.5 to 8 per cent, had also warned further moderation in the growth rate.
In th context of the global financial crisis, countries should examine their capitalist economic policies, so as to include community development and environmental safety, said Maira. "The year 2009 will be a tough year, as investment by companies and employment is likely to come down," he said. The US model of economic growth, which centered around profits and shareholder's interests alone, was not conducive to the Indian economy, he said.