Mumbai, Jan 22: India is expected to grow at 6.8% in Calendar Year (CY) 2012, in comparison to the previous forecast of 8%, but expansion is expected to accelerate strongly in CY 2013 to touch 9.5%, global audit and consulting firm Ernst & Young (E&Y) has said.
E&Y had pegged GDP growth for CY 2012 at 8% in its first Rapid-Growth Markets Forecast (RGMF) released in October 2011.
"While growth in the current year has moderated, India's medium-to-long-term growth prospects remain intact," E&Y India Partner & India Markets Leader Farokh Balsara said in a statement here.
According to the latest RGMF, growth in India is expected to accelerate strongly in CY13 at 9.5% as the global economy recovers, impact of previous interest rate tightening wanes, investment increases and exports pick up.
An improvement in both domestic and external demand will feed the recovery in growth, it said.
E&Y said slackening demand, turbulent and volatile markets and credit liquidity problems in Europe are beginning to squeeze rapid-growth markets (RGMs) but not to the extent of derailing robust economic performance.
The RGMs are expected to grow collectively by 5.3% this year, in stark contrast to the mild recession expected in the eurozone in H1 2012 and modest growth in the US, according the latest E&Y report.
