Reserve Bank of India cuts GDP forecast to 5.8% for FY’13

Reserve Bank of India (RBI) cuts Gross Domestic Product (GDP) forecast to 5.8% for FY’13.

The Reserve Bank of India (RBI) on Tuesday sharply lowered this fiscal’s economic growth projection to 5.8 per cent, from projection of 6.5 per cent, in view of global and domestic factors like poor investments and subdued demand.

“…global risks have increased further and domestic risks have become accentuated by halted investment demand, moderation in consumption spending and continuing erosion in export competitiveness accompanied by weakening business and consumer confidence,” RBI governor D Subbarao said in half yearly review of the monetary policy.

Indian economy recorded a growth of 5.5 per cent in the first quarter of 2012-13.

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