As the folks in RBI are busy combating inflation by repeated interest rate hikes, the Indian economy's growth rate is under threat. A few days after RBI Governor D Subbarao announced the latest rate increase, the Prime Minister's Economic Advisory Council revised its growth outlook for the year down to 8.2% from 9%. Driving this weaker growth will be a 'significant weakening in investment, said the council. And it's not just investment. "One by one, all the growth engines appear to be heading for a simultaneous slowdown," warn economists Chetan Ahya and Upasana Chachra of Morgan Stanley.
ET
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