The number of sceptics on the economy is growing, if the latest quarterly survey of the manufacturing sector by Ficci is to be believed. The survey conducted by the industry lobby group shows that in the fourth quarter, fewer people believed that the current growth momentum in the economy would hold up. While in the previous two quarters only three out of 10 people surveyed believed that growth would moderate, now they number four out of 10; they blame it on the growing cost of borrowing.
The survey’s findings are consistent with the projections put out by OECD on India on Monday. The Paris-based organization claimed that India was showing signs of a slowdown.
If true, it will be a fresh bout of bad news for the UPA, especially for its Union budget, whose revenue projections rely on the 9% growth trajectory being sustained. All attention will now be on RBI’s policy actions due later this week.