Record-Low Interest Rates, Tax Cuts Boost India's Growth

Record-low interest rates and tax cuts in 2009 have resulted in India's economy growing at the fastest pace in a year, reports Bloomberg.

 

According to the median forecast of 19 economists in a Bloomberg survey, India's gross domestic product rose 6.3% in the three months ending Sept. 30 from a year earlier. That would compare with 6.1% in the previous quarter, says Bloomberg.

 

Bloomberg says that, to steer the nation through the worst global financial crisis since the 1930s, the central bank has kept the key reverse repurchase rate at 3.25% since April and government spending and tax cuts have taken the value of stimulus measures to 12% of GDP. That’s helped growth recover from a four-year low in the final quarter of last year and the benchmark Sensitive index on the Bombay Stock Exchange to climb about 70% this year, notes Bloomberg.
 

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