Jun 14, 2012, 10.59 AM | Source: PTI

ICRA pegs GDP growth at 6.2-6.4% in FY13, calls for reforms

ICRA pegs GDP growth at 6.2-6.4% in FY13, calls for reforms

Mumbai, Jun 13 (PTI) Rating agency ICRA today pegged India's GDP growth forecast for the fiscal 2012-13 at 6.2-6.4 per cent and strongly asked for an early introduction of reform measures to bring back investor confidence. "Early introduction of measures to revive business confidence, investments and capital inflows are imperative to improve the macroeconomic outlook and restore investor confidence," the agency said in a note. Factoring in the possibility of a weaker monsoon, inflation continuing to be above the comfort mark at over 7 per cent, easing in policy rates and some resolution to euro- zone crisis, ICRA expects the country's GDP to grow by 6.2 to 6.4 per cent in FY13. The rating outfit joins a rash of think-tanks, research houses, investment banks and other agencies which have downwardly revised their growth estimates for the country following the release of Government data last month which pointed to dismal growth. Quarterly growth slipped to a nine-year low at 5.3 per cent for the three months ended March 31, while the same for 2011-12 was at 6.5 per cent, lower than the 6.7 per cent clocked during the peak of the post 2008 credit crisis. The slowdown is being attributed to a slew of reasons, including a 'policy paralysis', where critics are attacking the lack of timely decision making in the executive and blaming it for aggravating troubles. ICRA's peer in the rating world, Standard & Poor's warned that it will be forced to downgrade the country to junk staus if urgent reform measures are not taken and also blamed the Manmohan Singh administration for the economic gloom. (more) PTI AA AP RSY


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