India growth this year affected by credit woes
Goldman Sachs has significantly downgraded its growth forecast for India this year and 2009 as the global economic crisis has fully engulfed the emerging Asian nation.
The bank lowered its forecast for the current year to March 2009 to 6.7 percent from a previous estimate of 7.5 percent, Agence France-Presse reported recently. For the 2009-2010 fiscal year it has pulled back growth estimates from 7 percent to 5.8 percent.
“The gathering financial crisis and credit crunch over the past several weeks has affected India’s financial sector significantly, with both domestic and external liquidity drying up, affecting the financing for corporations, loans for households, and trade credit for exporters,” the investment bank told AFP.
The Indian government is holding to projections of 7 percent to 7.5 percent growth for this year, the report said.