Poor growth
Since the first quarter of financial year 2011-12, growth has been slowing down consistently and presently it is pegged at 6.9%, least in last 2 years. While services have been performing better with a 10% growth, industry has been trailing with a moderate 4.3% growth. As per experts, negative global outlook is the key reason behind this dismal performance. Worse, forecasts suggest the trend to continue for two to three more quarters.
Missing Investments
Consumption slowed down considerably in 2011 missing all its targets for the year with government consumption, one of the major constituents, seeing a negative growth. However, on the back of a strong middle class, private consumption has led the race to a respectable position. Investments have also been sluggish due to negative returns that the financial markets are offering.
Since the first quarter of financial year 2011-12, growth has been slowing down consistently and presently it is pegged at 6.9%, least in last 2 years. While services have been performing better with a 10% growth, industry has been trailing with a moderate 4.3% growth. As per experts, negative global outlook is the key reason behind this dismal performance. Worse, forecasts suggest the trend to continue for two to three more quarters.
Missing Investments
Consumption slowed down considerably in 2011 missing all its targets for the year with government consumption, one of the major constituents, seeing a negative growth. However, on the back of a strong middle class, private consumption has led the race to a respectable position. Investments have also been sluggish due to negative returns that the financial markets are offering.
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