JP Morgan sees India growth slowing down to 5.2 pc in FY 10
Financial services firm JP Morgan today said it expects India's economic growth rate to slow down to 5.2 per cent in FY 10, but pegged the current year's (FY 09) GDP at around 6 per cent.business Updated: Mar 13, 2009 19:29 IST
Financial services firm JP Morgan on Friday said it expects India's economic growth rate to slow down to 5.2 per cent in FY 10, but pegged the current year's (FY 09) GDP at around 6 per cent.
"I think India's FY 09 growth will be around 6 per cent. Next year, I expect it to be around 5.2 per cent," JP Morgan Chase & Co Chief Economist (India) Jahangir Aziz told reporters on the sidelines of a conference in Mumbai.
Aziz said the lower grwoth estimate for FY 10 is because India is expected to continue facing a downturn for the first two quarters of that fiscal.
"The fiscal packages of December and January and the monetary easing of late December will take some 6-9 months to show up in the growth rate," Aziz said.
He said the June budget that the new government will put in place should also translate into further positive results.
Aziz said he expects inflation will slide to 0.5-1 per cent in 2009-10 and it may turn negative September.
India's inflation for the week-ended February 28 fell to 2.43 per cent, the lowest in over six years.
Aziz said that sectors that depend on bank credit will be most affected by the current downturn.