India's growth rate may slow in current fiscal year and next, claims Reuters poll
GDP: Asia's third-largest economy grew at 8.2% in the last fiscal year, the fastest among major economies. But growth may slow to 7.0% and then 6.7% in the current and next fiscal years, according to a June 19-27 Reuters poll of more than 50 economists.
The first Reuters poll of economists after the ruling Bharatiya Janata Party (BJP) lost its parliamentary majority in phased national elections that ended in early June has kept steady the forecast for a mild slowdown in India's fast-growing economy. Asia's third-largest economy grew at 8.2% in the last fiscal year, the fastest among major economies. But growth may slow to 7.0% and then 6.7% in the current and next fiscal years, according to a June 19-27 Reuters poll of more than 50 economists.
The results are virtually consistent with pre-election expectations, with Prime Minister Narendra Modi widely predicted to win easily. However, the election results resulted in the BJP losing its substantial parliamentary majority for the third time. When the BJP formed a government with the help of regional parties, the majority of its ministers were maintained. There is no indication that the government's policy will alter soon. For years, it has attempted to increase GDP growth through government capital expenditures. Economists have maintained their projections as there are no substantial changes in government policy predicted in the near future.
