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Citi maintains India GDP growth rate at 5.8% for FY`10

Last Updated: Thursday, October 22, 2009 - 15:53

Mumbai: A day after the Prime Minister`s
Economic Advisory Council said that India`s GDP may grow by
6.75 percent in the current fiscal, global financial major
Citi on Thursday maintained its forecast at 5.8 percent.

"We maintain our FY`10 GDP estimate of 5.8 percent,
given that winter crop sowing has not yet begun and the
outlook for agriculture remains cloudy," Citi said in its
Global Economic Outlook and Strategy.

The Prime Minister`s Economic Advisory Council, headed
by former Reserve Bank Governor C Rangarajan, had said that it
was unlikely that the GDP growth rate would be lower than 6.25
percent for the current fiscal; buy might reach 6.75 percent
despite the adverse impact of monsoon on farm sector output.

The monsoon season for the current year turned out to
be the worst in over a decade with the rainfall was at 77 percent of the Long Period Average of 89cm; below the IMD`s
forecast of 93 percent, Citi said.

"However, incremental data (industrial production,
auto sales, PMI) continue to post positive surprises. Recent
industrial production numbers indicate that government
stimulus measures could offset the impact of negative
agriculture growth," Citi said.

Bureau Report

First Published: Thursday, October 22, 2009 - 15:53
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