Standard & Poor (S&P) pegs India’s FY’14 growth at 6.4%; may up rating outlook.
Global ratings agency Standard & Poor’s on March 14, 2013 pegged India’s GDP growth for Financial Year 2013-14 at 6.4% and said it may upwardly revise outlook on the sovereign rating if the government continues to focus on policy initiatives.
It, however, said that factors like five state polls in the second half of 2013, followed by general elections next year and the worsening economic environment both globally and domestically would make it difficult to rein in fiscal deficit at the targeted level of 4.8% for FY14.
On the back of this expectation, the agency estimated the GDP growth next fiscal to come in at 6.4%.
Last month, the Central Statistics Office had estimated FY’13 growth to come in at a decade low of 5%. Finance Minister P Chidambaram pegged it to be between 6.1 and 6.7% in the Budget.
Global financial institutions HSBC and Morgan Stanley have lowered India’s economic growth forecast for the next financial year to 6% from 6.2% earlier.