Standard Chartered expects India to grow at 7% for next decade

MUMBAI: Countries like India, Vietnam and Indonesia are expected to grow at 7% for the next decade, according to a Standard Chartered report on the world economy. However, there are also concerns of short-term crises, where the report puts India at par with five African economies like Uganda and Mozambique.

"Despite the genuine risk of a near-term crisis, Vietnam, India and Bangladesh from south Asia, and five countries from Africa, namely Nigeria, Ethiopia, Tanzania, Uganda and Mozambique will see a growth of 7% in the next decade," says Gerard Lyons, chief economist of Standard Chartered Bank.

One of the reasons for India's near-term constraints is the country's widening current account deficit which is currently at 3% of the GDP. Inflation is also one of the worries, where the report calls for strict monetary tightening measures.

Economies like India and Vietnam will see growth, albeit slower than the 2010 levels. Standard Chartered has called these countries 'The 7 Percent Growth Club' where economies like India, Vietnam and Indonesia will not only see a steady growth, but are also expected to double in size. The report also calls for a monetary policy tailor-made for the domestic needs, where there is considerable scope for tightening in the emerging economies.