INDIAN GROWTH SLUMPS TO 5% IN FISCAL YEAR 2013

Indian growth slumps to 5% in fiscal year 2013, the lower value in the last decade.

The Reserve Bank of India RBI has not reduced interest rate today, remaining at 7,25% the basic interest for loans to the financial system. Industry is not happy with such decission and consumers claim also that bank loans remain at 13% -15% interest rates.

Like in Europe, industry is asking for more credit and at lower interest rates. Balance Sheets in many cases show a high level of financial leverage, making the companies very sensitive to finance decissions from RBI.

With low demand from the private and the public sector, India is already another country affected by the Global Economic crisis.

It is our opinion that we are going to see in the next months/years a reduction on GDP growth gap between the three main economic areas: Asia, America and Europe. It is totally unsustainable socially that certain countries growth is over 8% GDP at yearly rate, meantime developped countries are in recession.