Fiscal Deficit: D&B`s quote on GDP numbers

The global turmoil, the major concern lies in the slowdown of the manufacturing activity of the country and without revival in the industrial production it would be difficult to put the economy back on the high growth path, says Dr. Arun Singh - Sr. Economist, Dun & Bradstreet.

The sharp deceleration in growth of GDP during Q3 FY12 reiterates the fact that the Indian economy is heading towards moderation. Although affected by the global turmoil, the major concern lies in the slowdown of the manufacturing activity of the country and without revival in the industrial production it would be difficult to put the economy back on the high growth path. In this scenario, the continued decline in output in the mining sector seeks urgent action from the government and private sector as the recovery in this segment is essential to drive the industrial activity in future. The significant revision in the investment data which points to a substantial decline in investment demand (as measured in constant prices) during Q2 of FY12 brings forth the severity of the prevailing investment scenario in the country. Nonetheless, with the expected easing of the policy rates by April 2012 and the subsequent revival of the investment demand and the likely focus on reforms by the Government in the upcoming budget would help economy to gather strength during the subsequent financial year. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.