The Indian government is the “single biggest factor weighing on business confidence and the economic outlook”, Moody’s Analytics said, revising downwards the GDP estimate for Asia’s third-largest economy to 5.5% in 2012-13.
It said the economic slowdown in India was sharper and more broadbased than anticipated and was now deeply entrenched across all sectors.
“There has been little policy response from either the Reserve Bank of India or the government and with the global uncertainty dragging on, we see nothing on the horizon to lift the economy from its funk,” said Glenn Levine, senior economist at Moody’s Analytics, adding that the second factor was the poor monsoon which was running well below average.
The agency, which is a division of Moody’s Corporation, said the slowdown was the most pronounced in the country’s corporate sector.
Industrial output fell for the third time in four months in June, by 1.8%, leading economists to say the RBI may ease interest rates to spur growth. The manufacturing sector, which accounts for nearly 76% of the index of industrial production, declined 3.2% in June against 11.1% expansion in the year-ago period. Finance minister P Chidambaram said the June IIP data was disappointing and called for focusing on the critical sectors.
IndianOil Corporation reported the biggest-ever quarterly loss by a listed company, at Rs 22,451 crore, in the April-June period, three times its previous record of Rs 7,485 crore loss registered in Q2 of 2011-12. Hindustan Petroleum, too, saw its bottomline sink by Rs 9,428 crore in the quarter. IOC said the losses were due to the government failing to pay up subsidy on diesel and cooking
It said the economic slowdown in India was sharper and more broadbased than anticipated and was now deeply entrenched across all sectors.
“There has been little policy response from either the Reserve Bank of India or the government and with the global uncertainty dragging on, we see nothing on the horizon to lift the economy from its funk,” said Glenn Levine, senior economist at Moody’s Analytics, adding that the second factor was the poor monsoon which was running well below average.
The agency, which is a division of Moody’s Corporation, said the slowdown was the most pronounced in the country’s corporate sector.
Industrial output fell for the third time in four months in June, by 1.8%, leading economists to say the RBI may ease interest rates to spur growth. The manufacturing sector, which accounts for nearly 76% of the index of industrial production, declined 3.2% in June against 11.1% expansion in the year-ago period. Finance minister P Chidambaram said the June IIP data was disappointing and called for focusing on the critical sectors.
IndianOil Corporation reported the biggest-ever quarterly loss by a listed company, at Rs 22,451 crore, in the April-June period, three times its previous record of Rs 7,485 crore loss registered in Q2 of 2011-12. Hindustan Petroleum, too, saw its bottomline sink by Rs 9,428 crore in the quarter. IOC said the losses were due to the government failing to pay up subsidy on diesel and cooking
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