The Indian economy has been growing for the past six months.
But the slowdown in its economic growth and the looming deadline for the government to raise the cap on capital inflow are prompting worries that the country’s economic recovery may be on track.
The government is expected to release a long-awaited forecast in coming weeks that may show a slowdown in growth.
In a nutshell, the economy is slowing but the pace of growth is slowing too, experts say.
The slowdown has been the biggest worry in the financial markets, but there has been no official data from the government about the slowdown, which has been accompanied by a sharp fall in prices for goods.
There is little evidence that the slowdown is getting worse, but analysts say it is unlikely to last long.
“There is a lot of talk of a slowdown.
It is not the case.
But if we go by official data, we are looking at a slowdown,” said Manoj Sharma, chief economist at BNP Paribas.
India’s economy has added a net 2.4 million jobs in the past 12 months, but that has not been enough to keep up with rising demand for goods from China.
China, which accounts for more than 60% of India’s exports, has been driving demand for its goods in India.
China has been adding jobs at an accelerating rate in recent months and is expected in the second half of the year to add another 200,000 jobs to its total.
There are signs that some of the slowdown may have started even before the announcement of the government’s economic plan.
India will soon announce a budget for the year, but experts are warning that if the economy continues to contract the economy may slow further.
“I don’t see a slowdown on the horizon in India for the foreseeable future,” said Rupak Sinha, head of research at ICICI Securities.
“We are looking more and more likely that the slowest growth will take place in the next 12 months or more.”