Investment bank Goldman Sachs has said India will grow 7.5 percent this year and 7.9 percent in FY17.
Terming these three factors as TEE's, the global brokerage firm said that these could be the key drivers of growth and can contribute 3.6 percentage point to GDP growth annually.
The global financial giant said its composite gauge of business activities is showing a gradual recovery after a "surprising slowdown since the last quarter of 2014", but it cautioned that there is not yet a broad-based recovery.
Goldman Sachs sees the first interest rate cut of 25 bps by RBI in February followed by another 25 bps cut in April.
Consumer prices rose a slower-than-expected 5.5 percent on year in October, following a 6.5 percent increase in the previous month, led by a fall in local food prices. This was the slowest pace since the index was launched in January 2012.
Tushar Poddar of Goldman Sachs expects 3-month, 6-month and 12-month dollar-rupee rate at 64/USD, 65/USD and 65/USD, respectively.
The downside risks include the possibility of an unclear verdict in the elections which would exacerbate investor uncertainty, says Tushar Poddar, Goldman Sachs.
Tushar Poddar of Goldman Sachs revised his 12-month target for the rupee to 56/USD from 52/USD earlier.
The hawkish statement by the RBI corroborates our view and we think market expectations of more than 50 bps of rate cuts in 2013 from here will gradually come down, says Tushar Poddar, Goldman Sachs.
The Union Budget to be presented on February 28 will be keenly watched as a test of the government‘s commitment to fiscal responsibility, whether there is a credible plan for reducing the deficit, and whether populist measures can be avoided before the general election in 2014.
Tushar Poddar of Goldman Sachs said they were currently overweight India on better global and local macro picture, as well as the positive reform momentum.
While the RBI action was ahead of market expectations, we were expecting them to ease more on repo rather than CRR, says Tushar Poddar, Goldman Sachs.
In an interview to CNBC-TV18, Tushar Poddar of Goldman Sachs gives his predictions for the calender year 2013. He is positive on the upcoming year and says the global growth will go back to 3.3 percent from 3 percent in the present year.
We expect the RBI to keep the Repo Rate unchanged, while we expect a CRR cut of 25 bps. The RBI will not be in a position to cut rates due to inflation remaining well above its comfort zone, says Tushar Poddar, Goldman Sachs.
Our 6-month forecast remains at 50.70/$, while we are changing our 12-month forecast to 50/USD from 49/USD previously, says Tushar Poddar, Goldman Sachs.
Our key view remains that core inflation will be well contained in FY13 , allowing for an easing of 125 bps in the repo rate by the RBI in 2012 and 150 bps in FY13, says Tushar Poddar, Goldman Sachs.
Liquidity has been very tight leading to short-end rates remaining well above the repo rate, says Tushar Poddar, Goldman Sachs.
Driven by hawkish RBI comments, we expect 25 bps hike in the policy meeting today, says Tushar Poddar, Goldman Sachs.
Tushar Poddar, vice president and chief India economist, Goldman Sachs, told CNBC-TV18 that the RBI may take a decision to pause rate hike in its policy meet on Friday as it has done enough tightening already.
The lower than expected June inflation is the first indication that the pace of pass-through from food and fuel prices to core may have slowed, as economic activity has weakened.
With higher rates, increasing oil prices and the impact on capex, we continue to expect GDP growth to slow further in FY12, says Tushar Poddar of Goldman Sachs.
Tushar Poddar, Chief India Economist at Goldman Sachs said he expects Finance Minister Pranab Mukherjee to hike the excise duty and see some announcements on the fertiliser sector front.