Morgan Stanley has projected a bearish economic growth outlook of 5.8 per cent for India in FY13.
This projection is based on weak GDP numbers at 5.3 per cent for the fourth quarter ended March 31, 2012.
“Our growth forecast is at 5.8 per cent for 2013 and 6.6 per cent for 2014. We expect recovery in 2014 and will see higher global growth rate, which will benefit India,” said Mr Chetan Ahya, Managing Director, Morgan Stanley, at a summit here on Tuesday.
On the domestic front, Mr Ahya said an aggressive and persistent policy action to revive private investment includes reduction in government expenditure and fuel subsidies, increasing savings and giving capital grants for infrastructure projects.
Growth should be based on investment than by consumption, he added.
On Monday, CRISIL reduced its growth forecast to 6.5 per cent for 2012-13 from its earlier projection of 7 per cent due to rising uncertainty in the Euro Zone and muted domestic demand.
The Citi group too in its April report estimated GDP growth to be in the 6.5-7 per cent range for FY13. “The picture looks bleak with deficits on four fronts – government, external, fiscal and liquidity,” the Citi report said.
However, the RBI's GDP growth estimate for FY13 at 7.3 per cent is relatively strong.