India

By Chaze, Aaron | Global Finance, July/August 2009 | Go to article overview

India


Chaze, Aaron, Global Finance


According to the Global Development Finance Report released recently by the World Bank, India is expected to be the fastest-growing economy in 2010, with 8% year-on-year GDP growth. The bank estimates China's 2010 GDP growth rate will be slightly less, at 7.7% year-on-year. The World Bank has also raised its estimate of India's GDP growth rate this year to 5.1% from 4%. Even at the higher level, that will be the slowest growth rate in six years. However, China and India are still in a different league than most other countries, which the Worfd Bank predicts will see their economies shrink this year

With the new government in place following the national elections in May 2009, additional reforms are expected in the financial sector, especially in banks, pension funds and the insurance sector. The International Monetary Fund (IMF) has weighed in, saying that mandatory investment norms for Indian banks that force the purchase of central and state government securities should be scrapped. …

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