16.12.09

ADB revises India's GDP to 7% for 2009

The Asian Development Bank (ADB) raised its growth outlook for the country to 7% from its earlier 6% for calendar year 2009. “... India is now expected to grow 7% in 2009, a full percentage point higher than projected in the Asian Development Outlook Update," the regional development bank said. In September, the bank, in its Asian Development Outlook 2009 Update, had forecast that the country's GDP would grow at 6% in 2009. The Reserve Bank's GDP estimate is 6% for the fiscal 2009-10, while the Planning Commission pegs it 6.3%, both with upward bias. However, inflation is set to become a challenge, the bank noted. The WPI leapt to 4.78% in November from 1.34% in October. Besides, coordination between monetary and fiscal policy is important to moderate inflation while sustaining growth momentum in the second half of FY09, the bank said.
Moody’s Investors Services raised its outlook on rupee rating to positive from stable, citing the country's strong external position and resilience to the global credit crisis. Moody's current local currency rating for the country is Ba2, two notches below investment grade.

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