Mumbai: JP Morgan India has said if India managed a 7.5% GDP growth this fiscal, it could be considered as healthy, especially when compared to the flat growth expected in several other economies.
“When large parts of the globe are seeing negative or a flat growth, I am happy that my (India’s) growth is at 7.5%,” JP Morgan India CEO Kalpana Morparia told PTI.
On Friday, the Reserve Bank forecast a 7.5-8% GDP growth for this financial year (FY’09).
“These are extraordinary circumstances the world over. There will be a (growth) slowdown,” she said.
India has been growing at 8% in the last three years. However, with the present global financial meltdown coupled with the world’s largest economy, the US, witnessing a recession, India is expected to miss the 8% target this fiscal.
The country needs to target 9-10% growth over a period of time, she said.
“The long-term structural story of India is so strong that medium-term returns are going to be fairly significant,” Morparia said.
India, which has emerged as a low-cost hub for many developed nations, would make a strong impact in the manufacturing sector, she said.
“The manufacturing sector in India will emerge in a big way because of its managerial talent,” she said, referring to many global auto companies looking at India as a manufacturing hub for their small cars.