Oil price to dent India’s GDP growth: UBS

11 September, 2018 12:00 AM printer

NEW DELHI: India's economic growth is expected to moderate in the second half of this financial year after a strong first quarter, owing to tighter financial conditions, high oil prices and slowing global growth, says a UBS report.

The global financial services major expects real GDP growth to slow to 7-7.3 per cent in the second half of this fiscal from 8.2 per cent in June 2018 quarter, report agencies.

"We believe headwinds, including tighter financial conditions, high oil prices, slowing global growth and a still muted private corporate capex recovery on legacy issues of high debt and weakened balance sheets will weigh on India's growth momentum," UBS Securities India's Economist Tanvee Gupta Jain and Strategist Rohit Arora said in a research note.

According to official data, the Indian economy grew at a two-year high of 8.2 per cent in the April-June quarter of current fiscal on good show by manufacturing and farm sectors.