While the estimates for other economies such as China were also lowered, India was among the countries that saw the sharpest downgrades. But the government can draw comfort from the fact that despite talking about the vulnerability due to the widening current account deficit, a trait that India shares with Indonesia, ADB said that foreign exchange reserves are sufficient to provide import cover for seven month.
"Setting aside weak foreign demand, frail industry and investment in India reflect persiste nt supply-side bottlenecks such as poor infrastructure and delayed structural reform to ease these constraints. India's current account deficits and volatile capital flows further dent business confidence," ADB said.
via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNETFNRgYnppJOaVSzFxXRK6JkM5pw&url=http://timesofindia.indiatimes.com/business/india-business/Asian-Development-Bank-pegs-FY14-growth-lower-at-4-7/articleshow/23434591.cms
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