CLSA cuts India's FY12 growth forecast to 6.7%

Brokerage CLSA cut its forecast for Indian GDP growth to 6.7% for the current fiscal year ending March from its earlier projection of 7.3%, citing cyclical deceleration caused by high interest rates, policy inertia and the adverse impact of global headwinds.

Brokerage CLSA cut its forecast for Indian GDP growth to 6.7% for the current fiscal year ending March from its earlier projection of 7.3%, citing cyclical deceleration caused by high interest rates, policy inertia and the adverse impact of global headwinds.

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On Thursday, the Reserve Bank of India governor said the economy is poised to miss the central bank's growth forecast of 7.6% for 2011/12 and the inflation outlook is uncertain.

The government said in a mid-year review this month that it expected the economy to grow by 7.25 to 7.75% in 2011/12, down sharply from an estimate of 9% issued in February.