The year 2009 is set to be more difficult for the Indian economy and despite the Government’s stimulus packages,it would take at least a year before it starts recovering,economists at Moody’s has said.
“I don’t think the stimulus is sufficient to start a recovery. The most it can do is to minimise the magnitude of a further slowdown… India will most likely start to recover in the March quarter (2010),” Moody’s economy.com economist Sherman Chan told PTI from Sydney.
She added this year will be more difficult than last year.
“We probably won’t see a solid rebound until early 2010. The US needs to recover first. Then global economic activity will begin to pick up,” Chan added.
The Indian economy grew by 5.3 per cent in the third quarter of this fiscal,its lowest rate in over five years,against a whopping 8.9 per cent a year ago,as agriculture and manufacturing output contracted.
This has ensued debate between the government and the economists. While the government is still confident of achieving close to 7 per cent growth this fiscal,economists at various global financial institutions see a further fall in the figures.