India's GDP to grow 4% this fiscal: Barclays

Projecting a GDP growth rate of 4 per cent for the current fiscal, British banking major Barclays has said tight liquidity conditions coupled with broad-based contraction in economic activity is likely to impact the country's performance.

"Our FY09-10 GDP growth forecast is four per cent... The uncertainty around our FY09-10 GDP growth forecast is large," Barclays Capital, the investment banking unit of Barclays said in a report.

The report noted that unlike the slowdowns seen in the mid-1990s and the early 2000s, this time tight liquidity conditions would hamper growth and the contraction in economic activity would be broad-based geographically.

Meanwhile, Barclays has projected an inflation of 1.6 per cent for the current financial year.

According to the report titled 'The Emerging Markets Quarterly: The End of the Free Fall', the Indian economy is expected to grow six per cent in fiscal 2010-11.

During the same period, inflation is anticipated to be four per cent.

Various international agencies including the World Bank, the International Monetary Fund and Asian Development Bank, have projected the Indian GDP to grow in the range of 4 to 5.1 per cent in the current fiscal.