India’s economic growth is struggling to meet previous financial forecasts, growing by just 6.1% in the last three months of 2011.
This marks the slowest period of growth for the country’s economy for three years. The statistic caused serious uncertainties about the development potential of the Indian economy.
The country’s economy experienced a downturn in industries including manufacturing, mining and agriculture in the fourth quarter of 2011.
The government recently announced that it was anticipating economic growth of 8%. However, the latest figures paint a contradictory picture.
The Central Statistical Office said, in a statement in New Delhi, that GDP fell to 6.1% in December following a 6.9% climb in the previous quarter.
Rajiv Kumar, the director-general of the Federation of Indian Chambers of Commerce and Industry told the Financial Times that the official growth target rate was out of reach:
“It’s a sobering number, below consensus. The numbers are telling us that we will be lucky to get 6.9 per cent growth overall for this year.”
Mr Kumar claims that India was on course for a 6.8% growth in the 2013 financial year, a figure that falls well short of the governments’ predictions.
Investors looking to transfer money may also be put off by the recent fall in the country’s currency value. The Indian Rupee recently fell against the Dollar.
The poor growth rate may mean that businesses may be deterred from investing in the country altogether.
Sonal Varma , economist at banking group Nomura in Mumbai, pointed out that India’s fortunes may be bleak for some time:
“What is surprising is the slowdown in investment and manufacturing is worse than during the 2008 global financial crisis. It’s the worst for these sectors for a decade.”
Transfer Money to India
If you are looking to invest in India, think carefully about how you will be transferring money to the country. Foreign currency exchange rates quoted by banks are not usually the best way to send money abroad.
Always ensure that you compare the market before you buy your overseas currency.
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