Investment banking firm Edelweiss expects 'some level of moderation' in India's growth story in the short-term, but is positive about it in the long term.

Moderation in the economy in the short-term could be because of high inflation, rising commodity prices, high oil prices, increasing fiscal deficits and global uncertainties, Edelweiss said in its annual report.

Despite the BSE Sensex swinging between 12,500 in March 2007 and 21,000 in March 2008, fund mobilisation through the primary and secondary markets is preferred, it said.

About $18 billion was raised through both primary and secondary offerings in the last year, it noted. Funds raised through IPOs, private equity placements, follow-on issues and Qualified Institutional Placements continue to be robust.

The Indian debt market would continue to perform better provided issues such as non-availability of trading platform, central clearing and settlement, stringent documentation requirements and secondary market volumes are addressed, the report said.

These issues deter issuers from raising money via the bond route, Edelweiss noted.

India's debt market is expected to grow from $400 billion in 2006 to $1.5 trillion by 2016.