JP Morgan cuts India GDP growth forecast to 5.1 pct, says 'industrial production straw breaks camel's back'

Written by Reuters | Updated: Oct 13 2014, 17:35pm hrs
JP MorganJP Morgan cuts its India GDP growth projection for 2014/15 to 5.1 percent from 5.3 percent. (Reuters)
JP Morgan cuts its India GDP growth forecast for 2014/15 to 5.1 percent from 5.3 percent after weak factory output print.

"IP (industrial production) debacle is the straw that breaks the camel's back," JP Morgan said in its Oct. 10 report.

India's August industrial output rose just 0.4 percent compared with 2.4 percent estimated in a Reuters poll.

The Reserve Bank of India projects GDP to grow at around 5.5 percent in the current fiscal year ending March 2015.

A slower growth and a fall in oil and commodity prices increase the chance for the RBI to attain its challenging 6 percent consumer price inflation target by January 2016, JP Morgan said.