Axis Bank lowers GDP growth forecast to 6.2% for 2009-10
New Delhi: Private sector lender Axis Bank
on Thursday lowered India's economic growth projection to 6.2 per
cent for the current fiscal from earlier estimate of 6.4 per
cent, mainly on account of lower farm output.
"With a moderate 3 per cent growth in Rabi food grains,
agriculture output is estimate to fall 2 per cent, resulting
in a 20 bps fall in GDP growth to 6.2 per cent from our
earlier projection of 6.4 per cent," Axis bank said in a
report.
However, there is not likely to be any further impact on
inflation as most of the shortfall has been priced in and
there are sufficient buffer stocks, the report said.
The revised projection of the Bank is marginally higher
than what has been projected by the RBI.
Last week, the Reserve Bank in its second quarterly
review of the monetary policy, retained India's economic
growth outlook at 6 per cent with an upward bias in FY'10.
The global slowdown has pulled down India's economic
growth to 6.7 per cent during 2008-09 from about nine per cent
a year ago.
In the first quarter of this fiscal, the economy expanded
by 6.1 per cent, and it is expected that growth rate would
decelerate further in the second quarter before picking up.
Bureau Report