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Moody's: Indian economy recovery on the anvil

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Moody's: Indian Economy Recovery On The Anvil. The Indian economy has bottomed out and the recovery is on the anvil although the days of eight per...

Mumbai: The Indian economy has bottomed out and the recovery is on the anvil although the days of eight per cent growth are “gone”, Moody’s Analytics said on Thursday.

“The economy is nearing the bottom of the current cycle and there is recovery in sight as investment should improve from the fourth quarter, as the government has been actively trying to restart stalled investment projects, both from the public and private sectors,” senior economist at moody's Analytics Glenn Levine said in a note on Thursday.

“Yet the recovery will be modest, as weak business sentiment will take time to turn around. We expect fixed investment to grow 3.5 per cent in 2014 after being flat in 2013,” he added.

The arm of the global credit ratings agency moody's also said: “The days of eight per cent GDP growth are gone. We expect the Indian economy to hit its potential growth rate of 6.5 per cent by the second half of 2015.”

India’s economy expanded by over nine per cent in the three fiscal years before the global financial meltdown of 2008 and authorities have repeatedly maintained that the country has a potential to grow between eight-nine per cent.

Explaining what could be the success formula, Moody’s said that a combination of good luck and modestly better policies will drive a steady acceleration in economic activity, although the upturn will be patchy and difficult to see for six months or so.

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