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As Indiaâs Growth Slows, Its Leaders Face Political Headwinds
Keywords:
Tags: Current Focus, India,
Inflation in India is at 9.1% in May 2011, compared to the prior year. GDP growth for the first quarter of 2011 slowed to 7.8%, from an annual rate of 8.3% in the fourth quarter of 2010. Other figures show the same trend. Local investment growth for the second half of the fiscal year ending March 31, 2011 was at 4.1%, a decline from 14.7% at the beginning of the year. Foreign investment in the first quarter 2011 declined 32% from the prior year, down to $3.4 billon. Car sales have also declined to the lowest rate in two years.
2010 high Inflation and asset price bubbles in in India and China, and low or no inflation in Europe, Japan and the USA.
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Wide divergence in conditions and the prospects of tightening credit in Asia affecting export prospects of the USA which depends on exports for half the growth generated in 2009 and early 2010 according to Commerce Department figures.
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