HSBC cuts India growth forecasts for fiscal years 2013, 2014
HSBC further cut its India growth forecast for the current and next fiscal years, saying the slowdown in the economy has become more structural than cyclical.
HSBC cut its GDP forecast for the year ending in March to 5.2 percent from 5.7 percent, and its forecast for the next fiscal year to 6.2 percent from 6.9 percent, according to a report released on Thursday.
"We think the reform process will take time and it will likely be another three years before growth returns to 8 percent on a sustained basis," it said.
HSBC had previously cut its India growth forecasts for fiscal 2013 and 2014 in September.
HSBC lowers India's FY13 growth forecast to 5.2 pc
New Delhi, Jan 10 (PTI): HSBC has cut India's growth forecast for this fiscal to 5.2 per cent from 5.7 per cent, citing insufficient progress on structural reforms and slow
implementation of infrastructure investment projects.
HSBC has lowered India's growth forecast for this fiscal to 5.2 per cent from 5.7 per cent projected earlier, and for financial year 2013-14 to 6.2 per cent from 6.9 per cent.
HSBC said the fiscal and current account deficits have turned "uglier", but the recent reform push, if sustained, should help lift growth and "beautify" the twin deficits, but
it will take some time.
"We think the reform process will take time and it will likely be another three years before growth returns to 8 per cent on a sustained basis," Qu Hongbin MD and Co-head Asian Economics Research
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