Reforms or not, India to see consumption-led recovery in 2013: Deutsche Bank report
India, which is increasingly becoming vulnerable to global demand and price shocks is likely see a pick-up in external demand next year, moreover, exporters would also be supported by a weaker exchange rate, the report said.
The Deutsche Bank report further added that "the RBI is likely to cut rates next year, which should also help. And finally, we see consumption remaining resilient, helping anchor demand."
India's structural impediments are many; a cyclical recovery in 2013 may not need major policy push, any chance of returning to an over 8 pet cent growth trajectory would necessitate far greater boost to investment, wide-ranging fiscal reforms, and greater policy efficacy, it said.
"India is likely to face less pressure in 2013, but we hope the breathing room will not act as a deterrent to medium-term growth-critical measures," the report added.
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