Morgan Stanley marginally raises 2014 GDP forecast to 5.2%

Tags: News
Forecasting a marginal improvement in India's economy, Morgan Stanley has revised the growth projection for 2014 to 5.2 per cent from 5.1 per cent earlier.

"We did ... Fine-tune India's 2014 growth estimate from 5.1 per cent to 5.2 per cent," Morgan Stanley said in its research report titled Asia Pacific Economics Spring Outlook.

It also lowered retail inflation forecast for 2014 to 7.6 per cent from the earlier 8.2 per cent.

The report said in the recent months policy makers as well as the private sector have made some efforts to improve productivity.

The government, it said, "has started to initiate policy steps to improve the business environment, such as allowing periodic diesel price hikes, setting up the Cabinet Committee of Investment to expedite approvals of large projects, notifying of natural gas price policy, and liberalising FDI limits".

In the October-December quarter, India's economy grew below expectations at 4.7 per cent on falling output in the manufacturing sector.

Growth in the first nine months (April-December) was 4.6 per cent.

The economy must expand by 5.7 per cent in January-March to achieve estimated GDP expansion of 4.9 per cent in 2013-14.

As per data, in February retail inflation fell to a 25-month low of 8.1 per cent, while wholesale price-based inflation stood at 4.68 per cent -- a 9 month low level.

Referring to external sector, Morgan Stanley said the current account deficit (CAD) has narrowed substantially from 6.5 per cent in October-December of 2012 to 0.9 per cent of quarter ending December 2013.

"A part of this improvement in the CAD reflects the decline in gold imports due to quantitative controls," it said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • RBI has been wise to retain policy rates

    The Reserve Bank of India has been wise to retain policy rates in its latest money policy announcement.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Education domain must be autonomous

Few issues in the higher education domain exist despite numerous ...

Rajgopal Nidamboor

Can we modify our emotional bearings?

We are not always a replica of our thoughts, emotions ...

Gautam Gupta

French fashion icon Gaultier’s pret goodbye

With Gaultier gone, the world of international prêt will never ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture