Morgan Stanley sees india GDP growth at 5.8% | business | Hindustan Times
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Morgan Stanley sees india GDP growth at 5.8%

Global investment bank Morgan Stanley on Wednesday slashed its projection for India’s GDP growth rate to 5.8% for the current fiscal from 6.3% earlier, blaming a misguided policy approach and “bad growth mix.” HT reports.

business Updated: Jun 07, 2012 02:29 IST
HT Correspondent

Global investment bank Morgan Stanley on Wednesday slashed its projection for India’s GDP growth rate to 5.8% for the current fiscal from 6.3% earlier, blaming a misguided policy approach and “bad growth mix.” It also saw the Reserve Bank of India lowering interest rates by one percentage point more by March 2013.

The bank said India’s yawning fiscal deficit and high interest rates have led to a fall in private investments, and the situation is “not sustainable.”

It said the high growth between 2003 and 2007, when GDP grew at 9% a year, was driven by private investment, unlike the present consumption-led growth.

According to the official data released last week India' growth rate for the fourth quarter in 2011-12 stood at 5.3%, the lowest in nine years while it was 6.5% for the full fiscal.

Besides Morgan Stanley, several other global banks such as Goldman Sachs, StanChart, HSBC, Citi, have also slashed growth projections for India.