India embittered some analysts as the officials informed that the country saw its growth slump to the slowest pace in a decade. The government’s measures did not work and the Asia’s third economy visibly slowed down, adding to the alarming news on the India’s economic conditions. But analysts should have got used to under-performing India as it was a normal picture of the Asian economy in the last fiscal year. However, some analysts underline that the worst is over and the better days are coming.
Not surprisingly, the Reserve Bank of India has decided to cut interest rates for the second time since the beginning of 2013. The cut in interest rates is aimed at boosting growth and reviving investment in the former “Jewel in the Crown.” However, the Reserve Bank of India underlined that further easing monetary policy would be difficult to introduce.
On the 7th of February, the government of India informed that economic growth would slow down to 5 percent in the fiscal year ending March. According to the forecast, the India will witness the slowest rate of expansion in a decade. As a result, Prime Minister Manmohan Singh will face one more problem while he is struggling with muted investment and rising inflation. The International Monetary Fund has recently warned that India will witness an economic slowdown due to the aforementioned problems, namely, drops in investment and high inflation as well.
On the 30th of November, the ministry of statistics informed that India saw GDP growth slow to 5.3 percent in the quarter ended in September. The economy of India slowed more than analysts initially expected. It is likely that the Asia’s third economy is to see its worst year in a decade as analysts underline the importance of implementing difficult reforms that could revive the economy of India.