| India GDP may grow 5% in FY13: Survey |
NEW DELHI India’s gross domestic product (GDP) GDP is likely to grow at less than 6 per cent for the current financial year, according to a survey conducted by Standard Chartered Bank. While 72 per cent of the 125 respondents in a client survey said that the GDP is likely to grow at less that 6 per cent, 20 per cent of them said growth may be even less than 5 per cent.
However, 85 per cent of the respondents said India can return to its pre-crisis growth levels of about 9 per cent before 2016. The view may have been driven by the fact that the 2014 general elections will effect a change in the political scenario which will be more conducive to economic growth, the bank said.
Only 27 per cent of the respondents thought RBI should reduce interest rates by more than 75 bps. Most of the clients (66 per cent) expected a 0-50 bps reduction in rates.
The respondents’ views on the rupee were mixed with 40 per cent of the sample expecting the currency to be above 57 versus the dollar by end-September. While, 4 per cent felt it could come in above the psychological level of 60, another 40 per cent expect a 55-57 range by the end of September.
Indian economy could see a slower growth at 5.6-6 per cent in the current fiscal if the monsoon remains poor, global financial services major Citi said last week.
The estimate is much lower than Citi’s earlier growth projection of 6.4 per cent for India, which saw its economic expansion touch a nine-year low of 6.5 per cent last fiscal.
Agencies
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