Growth Slowdown

India’s GDP growth is on the doldrums for quite a long time now; in one of the previous blogs, I have elaborated various reasons for slowdown in GDP growth accusing primly UPA government. Q-o-Q GDP growth has been slowing with no recovery seen in the near future. Slow down in Manufacturing is bound to spill over to services sooner than later, with services accounting for almost 60% of GDP output, severe slowdown in services is going to be a huge setback for the sector. May be we are already witnessing severe slowdown in services too as per HSBC services PMI for July ’13(which has shown y-o-y contraction). Agriculture sector is expected to perform better this year, however we may not expect more than 4-5% growth for entire FY’13-14. Assuming Industrial growth at 1-2%, we have a serious issue at hand with overall growth slowing down further to 4% in the quarters ahead.