“A HIGH level of growth remains very likely in India since it rests on good fundamentals, high savings and investment rates, and reasonable external debt ratios,” according to information released to FTW by credit insurer Coface South Africa. Eight per cent growth is expected in 2008/09 following a new record for growth of 9.4% in the 2006/07 fiscal year and 9.0% growth in 2007/08. Signs of overheating, a moderate deterioration of external accounts, but especially inflation (8.2% in May 2008) due to high levels of food and energy prices, has imposed a more restrictive monetary policy, according to Coface.
