In the backdrop of the global economic slowdown, the Indian economy will post an 8.7 per cent growth rate for the current fiscal year. The growth rate will dip to 7.5 per cent for the fiscal year 2008-09. This was stated by Economist Intelligence Unit (EIU) senior economist and Asia editor Anjalika Bardalai at a press conference during EIU’s 13th Business Roundtable with the Government of India.. EIU is the sister organisation of the weekly newsmagazine The Economist.

“India’s economic slowdown, to an average of 7.5 per cent in 2008-09, represents a moderation to a healthier, more sustainable rate of growth,” said EIU senior economist and Asia editor Anjalika Bardalai.

She, however, added that as one of the least trade dependent economies in the region, India could expect to remain relatively insulated from the effects of a US-led global slowdown. Moreover, high business confidence coupled with public and private consumption would ensure that India’s growth rate remain the third fastest in Asia in the medium-term. She articulated that she didn’t expect India’s growth story to be derailed, but only to be depressed. Among the most important challenges facing the country is inflationary pressures stoked by high food and fuel prices.

Also, she adjudged India to be better placed to exploit the regional dynamics arising out of high growth rates experienced in the region. “India, apart from Vietnam, is well-placed to tap the resultants engendered from the political instability or the rising wage and environmental costs of China,” she added.

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