Mumbai: The domestic economy is expected to post a growth to 7.4 percent next fiscal against the projected growth of 7 percent this financial year, a study by Standard Chartered Bank said on Monday.
"Growth in Asia's third largest economy, is expected to accelerate mildly to 7.4 percent in the fiscal starting April, 2012, from (projected) 7 percent in the current financial year," the study titled 'Global Focus-2012' said.
It, however, pointed out that the global economy is likely to slow down in 2012 with a fragile West and a resilient Asia, Africa, the Middle East and Latin America.
"This points to the continuation of a two-world where a fragile West contrasts with a resilient East ... Yet, no region is fully decoupled from events elsewhere.
"During the first half of 2012, problems in Europe and the West will weigh on global growth. By the second half, stronger growth across China and other emerging economies should pull up worldwide activity. It will be a recovery made in the East and felt in the West," Standard Chartered chief economist group head of global research Gerard Lyons said.
The study also said mounting crisis in the advanced economies is expected to cause the euro area and Britain to fall back to recession and the US growth to remain below-trend.
Referring to growth in Asia, the study said despite some slowdown in growth in the continent, it would still remain robust in the next financial year.
"Asia's GDP growth will slow to a still robust 6.5 percent in 2012 from 7.3 percent in 2011," it said adding the Chinese economy is expected to cool in the first few months of 2012 before rebounding due to a major policy boost.
As per the report, growth in the Asia's largest economy will decelerate from 9.2 percent to 8.1 percent in 2013.
About growth of the world economy, the study forecasts that global growth will be around 2.2 percent for the full year from around 3 percent in 2011.
First Published: Monday, December 12, 2011, 22:13