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Britain’s Prudential sees Indian GDP growth at 7 to 7.5 pct for next two years
Posted by Yogesh on Friday, 18 July, 2008
MUMBAI (Thomson Financial) – UK life insurer Prudential Plc. said it expects India’s gross domestic product to grow by 7 to 7.5 percent per year for the next two years and added it remains excited and confident about opportunities in Asia’s third-largest economy.
Prudential chief executive Mark Tucker said here it remains buoyant about India despite macroeconomic risks such as inflation. Retaining investor trust in current market conditions is the biggest challenge, he added.
The Reserve Bank of India had said it expects India’s GDP growth to slow to between 8 and 8.5 percent this year from 9 percent last year.
On the mutual fund industry, Tucker said there is great scope for the saving industry in Asia.
For fiscal year 2008 India’s savings rate amounted to 34.8 percent of GDP because of higher corporate, government and stable household saving. Tucker told Thomson Financial News that Prudential is considering moving its tax base elsewhere from the UK and is exploring options, but gave no further details.
Source CNBC
