‘Consumption to push growth up to 6.7% in FY14’
10 Jan 2013 6:20 AM IST
Ratings agency Crisil on Wednesday said a revival in consumption will push up the country's gross domestic product (GDP) growth rate to 6.7 per cent in FY14, from 5.5 per cent estimated for the current fiscal (FY13).
'India's GDP will grow at a higher rate of 6.7 per cent in 2013-14 in comparison to 5.5 per cent estimated for the current fiscal due to a revival in consumption,' the agency's research division said in a note. Improvement in the farm sector, lower interest rates and higher government spending will drive the consumption demand, it added.
The estimates from Crisil come at a time when the economy has witnessed a a downward revision of growth estimates by analysts for a better part of the ongoing fiscal due to troubles on the global and domestic front.
It emphasised that the RBI, whose elevated interest rates have been one of the factors blamed for the lower growth, will cut its interest rates by up to 1 per cent starting January as inflation moderates.
'India's GDP will grow at a higher rate of 6.7 per cent in 2013-14 in comparison to 5.5 per cent estimated for the current fiscal due to a revival in consumption,' the agency's research division said in a note. Improvement in the farm sector, lower interest rates and higher government spending will drive the consumption demand, it added.
The estimates from Crisil come at a time when the economy has witnessed a a downward revision of growth estimates by analysts for a better part of the ongoing fiscal due to troubles on the global and domestic front.
It emphasised that the RBI, whose elevated interest rates have been one of the factors blamed for the lower growth, will cut its interest rates by up to 1 per cent starting January as inflation moderates.
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