At a time when many countries are facing challenges on the fiscal consolidation front, India with its favorable interest rate-growth differential has an advantage in addressing deficit concerns this year, International Monetary Fund (IMF) said Tuesday.
Ratings agency Crisil Monday cut its FY14 growth forecast for India to six percent from the earlier 6.4 percent citing a variety of reasons, including the high lending rates, weaker pick-up in consumption and issues around mining and project clearances.
The government is doing a lot to push growth but the impact of its efforts will be felt in the second half of the fiscal when the expansion rate will show some improvement, Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Thursday.
Ruling out any fiscal incentive to boost the sagging economy, Finance Minister Pranab Mukherjee Monday said the growth rate would see a turnaround in the current fiscal and based his optimism on declining crude prices in international markets and a normal monsoon.
Falling rupee and high inflation would make it difficult for India to achieve 7.5 percent economic growth during the current financial year, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said.
The Reserve Bank Wednesday said it expects the economic growth in the current financial year to be around seven percent and does not see signs of a "spectacular turn-around" in the coming fiscal as well.
The World Bank has estimated India's growth for the current fiscal at 6.8 percent, lower than the government projection, as the economy faces headwinds of high interest rates and "heightened" uncertainty of policy reforms.
India's fiscal deficit reached almost 71 percent of its full-year target in the first half of the year, casting doubts over its ability to meet budget goals as federal finances feel the pressure of squeezed revenues and slowing growth.
US investment bank Morgan Stanley on Monday slashed its growth forecast for India for the current fiscal year as well as next citing rapidly deteriorating near term growth outlook for Asia's third biggest economy.