Current phase of slow growth may continue for a while: Manishi Raychaudhuri, BNP Paribas

Manishi Raychaudhuri, MD & HOR, BNP Paribas Securities gives his views on the GDP numbers in a chat with ET Now



ET Now: After the third quarter GDP numbers of 6.1%, everyone believed that we had bottomed out and things could only look better. For the fourth quarter we have got a number of 5.3%. Also, the problems in Europe are only beginning to accentuate themselves. Going into Q1 and Q2 of this year, do you believe that the situation could get worse?

Manishi Raychaudhuri: It is difficult to prognosticate on a short term basis. This current momentum of slow growth could continue for a while. Purely from a political perspective, steps that are necessary to revive growth are difficult to take by the government.

Even on the monetary stimulus front, not much can be done. So, what we need right now is more fiscal discipline. At the same time, projects that are lying dormant must be kick started. That requires some degree of political will on part of the government.

Unfortunately we are not seeing that now. Therefore, we would possibly continue to see this run rate for some more time.