Goldman Sachs warns about risks to India's growth
Thursday, 09 December 2010, 06:42 IST
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Mumbai: Global financial powerhouse Goldman Sachs today said high inflation combined with a high current account deficit pose risks to the India growth story. "We would like (India's) growth to be stable. However, there is a risk of a boom bust if the current account deficit continues to widen," Goldman Sachs Vice-President and Chief India Economist Tushar Poddar told reporters here. "We have seen the real exchange rates appreciate over the last 12 months largely because of high inflation, which is a key risk to the Indian economy going forward," he said. Goldman Sachs expects the Indian economy to grow at 8.7 per cent and 8.3 per cent in FY12 and FY13, he said, adding, "this is driven by investment and largely infrastructure." "We are looking at an average inflation number of 6 per cent next year.
Source: PTI
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