India to grow faster than China in 2013: E&Y report

E&Y said that once inflation is in check and interest rates are no longer rising, consumers would be more willing to spend. This would support a general improvement in business environment, resulting in steady acceleration in growth next year

New Delhi: Bolstered by industrialisation, India is projected to grow at a faster clip than neighbouring China with a 9% economic expansion in 2013, reports PTI quoting a report by global consultancy firm Ernst & Young.

It cautioned, however, that India needs to tackle rising inflation and said the country’s growth this year would be 7.2%, much lower than 8.2% recorded last year.

India’s growth rate would rise to 8% next year, according to the report released today.

“The forecast pegs India’s real GDP growth rate to be the highest among all the Rapid Growth Markets (RGMs) starting in CY 2013, when the economy is expected to growth 9.5%, followed by China at 9%,” it said.

In 2014, India is expected to see an expansion of 9% while Chinese would see a growth of 8.6%.

The RGMs Forecast focuses on 25 nations—including India, China, Brazil and Russia—that display strong growth potential and are, or could be, strategically important for business.

India and China would be able to better withstand a likely slowdown mainly on account of large size of their domestic markets as well as from beneficial effects of lower oil and commodity prices, E&Y said.

It pointed out that even though the overall outlook for India is positive, the country would need to address rising inflation.

Headline inflation, which has been hovering above the 9% mark since December 2010, stood at 9.72% in September.

“... provided India's inflation does start to fall back by the end of this year and the US and EU economies do not slip back into recession, the soft patch for Indian growth should be relatively short-lived,” the report noted.

E&Y said that once inflation is in check and interest rates are no longer rising, consumers would be more willing to spend. This would support a general improvement in business environment, resulting in steady acceleration in growth next year.

“India enjoys an advantage in its high savings and investment rates, currently a third of the gross domestic product (GDP); relatively low GDP per capita on purchasing power parity giving significant potential for growth and continuing industrialisation and urbanisation,” the report said.

E&Y India’s partner & India markets leader Farokh Balsara noted that India’s consumption-led economy continues to make the country a highly attractive investment destination in the short to medium term.

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COMMENTS

Grow shop

5 years ago

Este artículo es muy interesante ya que nos muestra información muy completa y concisa gracias y sigan publicando.

Shadi Katyal

6 years ago

Is it nice to read such a report about our future development at Deewali time.
One wonders why such people keep making fool of the nation or are they not aware about the lack of any infrastructure and passage of Labour Laws or even opening the nation to investments. How about working ethics and indiscipline. Dose anyone in the world is not aware of killing of a Japanese manager in NOIDA and now sit in at Maurati plant. Have not seen such strikes on drop of a pin. What about shortage of power and shortage of coal. Does E & Y not written such reports to keep our spirits high?
One has to consider simple thing What is GOI done so far in 60 years and what has changed if anything since the British left. Has anything changed beside becoming more rigid when it comes to investments from abroad.
My hats are to those who despite all the road blocks and red tape has continued to forge ahead.
We can keep pushing the goal posts as we have done for decades but when are we going to face the truth of our lack of any development when GOI bureaucracy stand on the door to stop any development. We have babus rule and thus too many red tape and raod blocks to jumps over. The only other thing is to buy all these Babus and hope one can get the permission to set up a plant as was in British days.
Why does any investor needs Govt permission to start industry????

Cash-for-vote scam: HC releases Amar Singh on bail

While granting bail to 55-year-old former Samajwadi Party general secretary Amar Singh, who was undergoing treatment at AIIMS under judicial custody, the court asked him to furnish a personal bond of Rs50 lakh and two sureties of like amount

New Delhi: In a relief to Rajya Sabha MP Amar Singh, the Delhi High Court today granted him bail in the 2008 cash-for-vote case but restrained him from leaving the country without its permission, reports PTI.

While granting bail to 55-year-old Mr Singh, who was undergoing treatment at AIIMS under judicial custody, the court asked him to furnish a personal bond of Rs50 lakh and two sureties of like amount.

Justice Suresh Kait also asked Mr Singh to surrender his passport before the trial court which is hearing the cash-for-vote case.

The court passed the order on an appeal filed by Mr Singh challenging the lower court’s order rejecting his bail plea.

The lower court had granted interim bail to Mr Singh on 15th September on medical grounds, which continued till 28th September when the judge ordered his re-arrest while dismissing his regular and interim bail pleas on the ground that he was ‘stable’.

Mr Singh has been booked under various provisions of the Prevention of Corruption Act and the Indian Penal Code in the cash-for-vote case.

The high court had on 19th October reserved its order on Mr Singh’s bail plea.

Pleading for bail during the arguments, the former Samajwadi Party general secretary submitted that he was hospitalised for treatment of multiple ailments and needed constant medical attention.

“It is an admitted case that Mr Singh is living on a donated kidney, transplanted in Singapore, and the surgeon, who did the surgery, is supposed to take care of the patient after the transplant. Unfortunately, the lower court did not consider it and termed his condition as stable,” his counsel pleaded.

The Centre had submitted that the medical reports given by AIIMS could not be disputed and “all is not well” with his medical condition.

Besides Mr Singh, Sudheendra Kulkarni, former aide of BJP leader LK Advani, former BJP MPs Faggan Singh Kulaste and Mahabir Singh Bhagora and co-accused Suhail Hindustani and Sanjeev Saxena are in jail in connection with the case.

Mr Singh, who was arrested on 6th September, had sought bail on medical grounds. He was taken to AIIMS from Tihar Jail on 12thSeptember evening after a bout of vomiting and diarrhoea.

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US market returns: Happy returns? Not exactly

In real (inflation-adjusted terms) US stock investors have made effectively no money, even with dividends—since the spring of 1998.

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