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Experts see India's economic growth picking up in 2013

Source : BUSINESS_STANDARD
Last Updated: Fri, Dec 07, 2012 07:42 hrs

pA decline in oil prices improving demand situation in abroad markets and structural reforms at home will help Indian economy regain its high growth trajectory in the coming years according to US investment banking giant Goldman Sachspp&ldquoWe see growth picking up gradually to 65 per cent in 2013 and further to 72 per cent in 2014&rdquo Tushar Poddar managing director and chief India economist of Goldman Sachs has said According to Poddar Indias gross domestic product GDP growth will accelerate from 54 per cent in 2012 and remain high through 2015-16pp&ldquoA decline in oil prices in real terms over the next few years a more favourable external demand outlook and domestic structural reforms which can ease some supply-side constraints&rdquo will drive India&rsquos growth he saidpptable width400 cellpadding2 tbody tr height20 styleheight 15pt td width927 height18 bgcolor95acb3font size2 faceTahoma colorffffffstrongGROWTH FORECASTstrongfonttd tr tr height20 styleheight 15pt td width927 height1 bgcolorccd7dd ul lifont size2 faceTahomaCredit Suisse cut its FY13 growth estimate for India by a notch to 59 per cent from 6 per cent attributing it to delay by the RBI in cutting rates to prop up growthfontli lifont size2 faceTahomaThe brokerage firm also lowered its FY14 growth forecast to 69 per cent from the earlier 72 per centfontli lifont size2 faceTahomaGoldman Sachs sees growth picking up gradually to 65 per cent in 2013 and further to 72 per cent in 2014fontli ul td tr tbodytableppSome economists expect the economy to start recovering in the second half of the financial year itself &ldquoGrowth appears to be bottoming out and we estimate it to be a tad better in the second half than the first-half The recent policy activism from the government and a favourable base strengthen this view&rdquo said Sachchidanand Shukla senior vice-president and economist at Axis Capital in a report yesterday In the first half of the financial year the economy grew 54 per centppBut it will require greater efforts for achieving a higher growth &ldquoAny chance of returning to an eight per cent plus growth trajectory would necessitate a far greater boost to investment wide-ranging fiscal reforms and greater policy efficacy India is likely to face less pressure in 2013 but we hope the breathing room will not act as a deterrent to medium-term growth-critical measures&rdquo said Taimur Baig and Kaushik Das of Deutsche Bank in a report on ThursdayppHowever Credit Suisse on Thursday cut its FY13 growth estimate for the country by a notch to 59 per cent attributing it to delay by the Reserve Bank of India RBI in cutting interest rates The international brokerage also lowered its FY14 growth forecast to 69 per cent from the earlier 72 per centppCredit Suisse expects RBI to cut rates by 50 basis points only in January and not in the upcoming mid-quarter policy review on December 18 The central bank has been holding on to its high rates despite concerns over growth citing inflation concernsp


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