Indian economy to grow at 4.5% in Q1: Moody's Analytics

The research and analysis wing of Moody’s, the global rating agency today said that the Indian economy will grow at 4.5% in the first quarter (April-June) of 2013-14.

 

Moody's Analytics said that the the Gross Domestic Product data is expected to show further deceleration in this quarter, "highlighting the challenges faced by new central bank governor Raghuram Rajan."

 

In its report, Dismal Scientist, it said, "The Indian economy has been steadily decelerating for the past three years and is now growing well below its trend rate."

 

The GDP numbers will be released on Friday. Earlier, Finance Minister P Chidambaram had also said that the first quarter GDP growth would remain more or less flat.

 

"Growth slowed down to 5% in 2012/13 and we expect that the growth trend will remain flattish in the first quarter, but even so, we are in better health than many other countries in the world," Chidambaram had said

 

Moody's Analytics further highlighted that all the three sectors of the economy had performed worse. "Manufacturing is weak, construction and fixed investment are growing very slowly, export?facing industries are struggling, and even the once?strong service sector industries have cooled in recent quarters", said the firm.