Date:12/04/2008 URL: http://www.thehindu.com/2008/04/12/stories/2008041255331500.htm

Business

‘GDP growth to slow down to 7.8 p.c.’

Special Correspondent

MUMBAI: The Goldman Sachs Asia Economics Research Group on Friday stated that India’s GDP growth to slow down to 7.8 per cent in 2008-09 from 8.7 per cent in 2007-08.

“With inflation accelerating and growth moderating, the macro environment continues to worsen. We expect the Reserve Bank of India to tighten money supply in its forthcoming credit policy due to the preponderance of inflationary concerns.

“We therefore expect GDP growth to slow to 7.8 per cent in Financial Year 2009 from 8.7 per cent in FY08, and the risks to growth are firmly on the downside,” Goldman Sachs stated in its Asia Economics Data Flash.