Replies to post #4928 on The Rising Influence of Rising Affluence

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India to grow at 7.5% in 2012-13: UN report

Plus related story at the bottom of this post

http://timesofindia.indiatimes.com/business/india-business/India-to-grow-at-7-5-in-2012-13-UN-report/articleshow/13080610.cms

NEW DELHI: India is projected to see a faster growth of 7.5% this fiscal on the back of higher savings and investment rates, even as most of the Asia-Pacific economies are likely to expand at a slower pace, says a UN report.

"The Indian economy's strong fundamentals, namely high saving and investment rates and rapidly expanding labour force and middle class will ensure a steady economic performance... We expect it to expand by about 7.5% in 2012-13," UNESCAP chief economist Nagesh Kumar said.

The growth estimate in the current fiscal is higher than the estimated 6.9% growth in the last fiscal year.

The Indian government has projected the economy to expand by 7.6% in the current fiscal.

The UNESCAP report, however, said that weaknesses of major developed economies pose a major threat to the growth in the Asia-Pacific region, which could come down to 6.5% in 2012, from 7% in 2011.

"The higher cost of capital and reduced demand for regional export, combined with loose monetary policies and trade protection measures of some advanced economies, contributes to this slowing of Asia-Pacific growth in 2012," United Nations Under-Secretary-General Noeleen Heyzer said.

She said the Asia-Pacific economies should try to maintain a growth-inflation balance, cope with capital flows and exchange rate volatility and create jobs to achieve high growth.

As regards India, the UN report said there are indications the economy is turning around as core sectors, including manufacturing, show signs of recovery.

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Related story>>>
http://timesofindia.indiatimes.com/business/india-business/Exports-grow-3-2-in-April/articleshow/13077711.cms

Exports grow 3.2% in April

NEW DELHI: The government on Thursday said exports grew 3.2% to $ 24.5 billion in April, led by a fall in export of textiles and gems and jewellery whose demand has been hit in Europe and the US.

Imports grew 3.8% in April to 37.9%, resulting in a lower trade deficit of $13.4 billion.

Although lower monthly imports and a contraction in trade deficit augurs well for the current account deficit, the government acknowledged that the slowdown in exports will make it tough to achieve the $500 billion target by 2013-14.