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The fortnight’s burning question. Following the rate hikes, can india still achieve at least 8 per cent gdp growth?

Print Edition: August 24, 2008

The fortnight’s burning question. Following the rate hikes, can india still achieve at least 8 per cent gdp growth?

No. Amit Mitra, Secretary General, FICCI
The rate hikes will definitely have an impact. High interest rates are already cutting into demand in sectors such as automobiles, consumer durables and real estate. There is a downward pressure on the entire manufacturing sector and this will have a bearing on GDP growth.

No. R. Kavita Rao, Economist, NIPFP
I don’t think a growth rate of 8 per cent is possible this year. Rising interest rates are reducing demand for durable goods and housing. International demand in the present scenario does not provide an alternative. High international crude prices are also increasing costs in the economy, and these will impact the country’s growth prospects.

No. R. Venkataraman, Executive Director, India Infoline
Growth will drop to less than 8 per cent this year. All the leading indicators are showing varying degrees of deceleration and the effects of the higher interest rates are yet to be fully felt. However, an 8 per cent growth rate will still make India one of the fastest growing countries in the world.

—Compiled by Manu Kaushik

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