India is projected to grow by 6% in the current fiscal while growth is expected to be steady in most of the Asia Pacific economies, global rating agency Standard & Poor’s said on Tuesday.
It, however, cautioned that a weaker global risk appetite and a poor monsoon would pull down growth to around 5% in 2013-14 fiscal.
“For India, a downside scenario featuring a combination of weaker global risk appetite and a poor monsoon seasons would pull growth down to around 5% in 2013 ... Upside growth would reach 6.5% in 2013,” S&P said in its report. It also said that there is softer traction in some Asia Pacific economies but growth expected to hold steady.
S&P’s growth projection is lower than the government’s estimate of 6.1-6.7%. It is, however, higher than RBI’s projection of 5.7%.
For 2014-15 and 2015-16 fiscal, S&P projected the economic growth to pick up at 6.7% and 7% respectively. “India’s growth forecast has been lowered to 6% in 2013 and 6.7% in 2014 on weaker consumption and exports,” it said.