BBC reports:
Growth is expected to continue to slow this year, but will remain higher than most other economies in the world.
"There will be deceleration this year coming from industry and high interest rates," said economist Saugata Bhattacharya, from the Mumbai-based Axis Bank.
"Industrial impulses will be curtailed. However, there will be a partial offsetting if agriculture and monsoons will be good," he said.
Manufacturing sector did not see any significant growth; rather it slowed down. The manufacturing sector grew by 5.8% compared to 9.6% in the previous year.
According to BBC’s Indian business correspondent, Karishma Vaswani, the rising cost of living had a negative impact on people and it got far worse.
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The cost of necessary products are increasing day by day. So, naturally it affects the whole world. People suffer a lot because of high price of daily product. It is good side for India that their economy is still growing but it's growing days are becoming numbered because of high price of all products. Now, the expansion are showing down. Hope Indian government will take any steps in this situation.
Posted by: kamrul hasan | June 3, 2008 5:06 AM | Permalink to Comment