| Thanks to a good monsoon, and agriculture doing better, Q1 has shown a stunning 9.3 per cent growth "" Crisil and JP Morgan are all set to hike their growth estimates for the year. With bank credit accounting for the bulk of investment funds, however, future investments could get hit if interest rates don't decline in the near future. So far, though, there are few reports of investments being put on hold, and capital goods growth is higher than last year. The investment boom has meant the share of consumption in the economy has fallen further "" in sectors like automobiles, demand has been badly hit. Infrastructure growth slowed in June, prompting the finance minister to alert the prime minister to the need for some intervention. Exports growth continues to fall. Inflation is down to a 15-month low. |
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