Western media is more interested in conducting study and research to ‘reveal’ that Indian growth rate may go down in coming days. According to a new research, it would be tough for India to maintain the present level growth rate. The policies and reforms may be proved as ‘policy on paper only’.

The main reason, according to the study, behind the possible slow down of Indian growth is the attitude of main political parties. They are more interested in winning support ahead of elections due in 2009.

Oxford Analytica says that forecasts of GDP growth for fiscal 2007-08 are indicating the slow down in economy to 8.4-8.6 per cent, however growth rate in 2006-07 had touched 9.4 per cent.

The study further says that this is the reflection of the impact of a credit squeeze launched by the RBI to restrict inflation. The rate of inflation had touched that alarming rate of 6 per cent earlier this year.

A summary of Oxford Analytica analysis was published on the website of Forbes magazine.

However, the study has shown the positive side of Indian growth as well. It says that the country is going great in agriculture growth, a favourable monsoon in this season may accelerate the rate of growth in this sector that would further support the country’s overall growth saga.

The most important point what the study has revealed that the period of ‘jobless growth’ is over. The country is experiencing the great opportunities for jobs in almost every sector. The quick expansion in job opportunities is just catching up with the increasing rate of the labour force participation.

Fast growth of capital goods industries and the growth of infrastructure may support the economic development in the long run. Moreover, the economic recession in western countries may increase outsourcing work to India that would further boost Indian economy for sure.