India to record economic growth rate of 7.3-7.8% in 2008: S&P

India to record economic growth rate of 7.3-7.8% in 2008: S&P

New Delhi: Playing a major role in dispelling the financial gloom in the Asia-Pacific region, India will record an economic growth rate of 7.3-7.8% in 2008, global rating agency Standard and Poor’s said today.

“Factors such as intraregional trade, supportive policymaking, and still-robust forecasts for China and India will help the region navigate the global storm," said the S&P ‘Asia Pacific Market Outlook’ report.

It said growth rate is likely to be lower at 6.5-7.0% in 2009, compared to 7.3-7.8% this year.

However, the official position is that the economy might see a rebound in growth during 2009-10.

The S&P report said ongoing market dislocation will significantly impact Asia-Pacific in 2009.

The report further projected that the consumer prices-based inflation would hover between 7.2 and 7.6% for the year 2008.

On Monday, the Finance Ministry had said inflation will soften due to meltdown in global commodity prices.

According to S&P, inflation will fall anywhere between 5.0 and 5.5% in 2009.

Further, the report highlighted that India and China, the region’s main growth drivers will record highest growth in the region and help the APAC economy to grow.

“That regional growth drivers such as strong domestic demand in China and India and the supportive monetary policy stances of the regions governments will enable most economies to experience positive, albeit slowing, growth in 2009," said the report.

Though, few economies may go through a lean growth period S&P said, Asia-Pacific is expected to be able to roll with the punches though some economies are likely to experience quarters of negative GDP growth.

Moreover, it pointed out that the APAC region’s growth may take a beating in 2009. “By the standards of 2006 and 2007, 2009 will not be an outstanding year by any means, but it will reflect the regions resilience and collective ability to moderate fluctuations around a strong growth trend rate."