'India's GDP to average 7.2 pc over next 5 yrs'
India's real GDP growth will average at 7.2 per cent over the next five years even as risks to the global economy continue to remain high, the Economist Intelligence Unit (EIU) has said.business Updated: Jun 22, 2009 20:12 IST
India's real GDP growth will average at 7.2 per cent over the next five years even as risks to the global economy continue to remain high, the Economist Intelligence Unit (EIU) has said.
The world's second-fastest growing economy may also see negative inflation for the next 3-6 months triggering expectation of rate cuts by banks, the research arm of London-based Economist added.
"Emerging Asia will be the world's fastest-growing region over the next five years (2010-13), but this mainly reflects a relatively strong growth performance by India and China. The EIU expects India's real GDP growth to average 7.2 per cent over the next five years," it said.
Global share prices have been boosted on expectations that the worst of the global economic meltdown is over, however, a sustainable recovery is distant, it maintained.
"India is likely to see negative inflation for three to six months, making a case for further rate cuts by the central bank. We expect the repo rate to be cut by a further 50 basis points, to 4.25 per cent, in the next few months," EIU Director of Research Manoj Vohra said.
Inflation turned negative 1.61 per cent for the first time in 30 years for the week ended June 6.
He, however, said negative inflation is not a grave concern for India.