'Worst yet to come for Indian economy'

Agencies
Posted: Friday, Mar 20, 2009 at 1534 hrs IST
Updated: Friday, Mar 20, 2009 at 1534 hrs IST

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New Delhi: The positive movement of the stock market and mixed economic indicators are
expected to be short-lived and the worst is not over for the Indian economy, according to
Moody's.
"The positive sentiment is expected to be short-lived, as India essentially only started feeling
the pinch of the global downturn in the December quarter and the worst is yet to come,"
Moody's economy.com said in a research report.
The industrial production growth slipped into negative territory for the third time in the
current fiscal by 0.5 per cent in January while exports also dropped by 15.9 per cent on a year
on year (yoy) basis in the month.
However, expectations of further monetary easing measures by the Reserve Bank increased
after inflation fell to 0.44 per cent for the first week of March against 2.43 per cent a week
ago.
Since October, RBI has infused over Rs 4,00,000 crore in the system by cutting ratios and
signalling interest rate cut.
There is also some positive news from Dalal Street as the Bombay Stock Exchange
benchmark index Sensex surged 245 points in this week.
Moody's added that the Indian economy is likely to grow by 6.3 per cent with some
downward risk in the current fiscal against government estimate of 7.1 per cent.
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» Indian Economy
Posted by Ajai Nuka on 2009-03-21 21:38:43.716167+05:30
I am with Banu Priya that the country would prosper only when we have selfless, young and educated politicians
heading the India Incorporate and not the likes of Manmohan or the aspiring Mayawati. The older generation can
be at the helm of the affairs heading the constitution as we need them for advise. However the posts of Prime
Minister and Central Ministers should be held by young, educated personalities. I hope this change of thought
would begin from like minded young professionals of India, the ones who strive to put the Indian Business on
steam.

Reply Forward

» Indian Economy
Posted by Banu Priya on 2009-03-21 08:09:10.193807+05:30
Indian economy will grow only when corruption is rooted out of India and constitution is changed to have
education requirement for politicians and a age limit of 50. If all these old grey hair heads like Manmohan and
Prathiba patil rule the country, economy will be shambles for the next 100 years and we will not see any light at
the end of the tunnel. India needs young educated blood who can take bold steps and turn the country
around.ThanksBanu priya.New York Times.
Reply Forward

» Worst yet to come for Indian Economy

Posted by Shadi Katyal on 2009-03-21 02:35:32.505127+05:30
It was only few weeks your paper was quoting Indian govt officials that India will not suffer and I wrote at that
juncture that it is time Indians must wake up and align with world. Why we live in our own dreams and thus have
ruined the economic conditiosn.Granted India has only 1% of world Trade share, which has been dwindling every
year, what makes our Minsiters make such statments.One starts wondering when oh when is India going to wke
up to the realities of world Trade and Globalisation.We cannot walk around with coloured glasses and not face
the truth.India has failed in all aspects because of lack of even common knowldge of world trade and
industrialisation.