By IANS,
New Delhi : India’s economic growth is forecast to slip to 5 percent in 2009 from 7 percent during the previous calendar year, even as the world output is slated to decline by 2.7 percent, said a report released by a UN agency Monday.
“Since domestic demand accounts for a large and increasing share of total demand, South Asia, particularly India, is expected to see continued growth in 2009,” said the annual Trade and Development Report of the United Nations Conference on Trade and Development (Unctad).
“Almost all the South-Asian economies should continue to grow in 2009, but at a lower pace. They are feeling the impact of the crisis through reduced capital inflows, lower migrants’ remittances and falling external demand,” the report added.
“The countries that have resisted recessionary forces better than others are those where the domestic market plays a more important – and increasingly growing – role in total demand, such as China, India and Indonesia.”
The gross domestic product had increased 6.7 percent in 2008-09 and the Reserve Bank of India (RBI) in its quarterly review of monetary policy had pegged the economy to grow by 6 percent in the current fiscal, with an upward bias.
The report also said that world trade is set to shrink by a considerable 11 percent in 2009 owing to lower demand by producers for raw materials and unwinding of speculative positions by financial investors in primary commodity markets.