BNP Paribas slashes India’s FY14 GDP forecast to 3.7%

Owing to the recurrent rupee depreciation, global analyst BNP Paribas has slashed its GDP forecasts from the previously announced 5.2% to 3.7% for the current fiscal. The country if registers the said GDP growth will mark it’s lowest ever growth index since 1992.

Mumbai: Owing to the recurrent rupee depreciation, global analyst BNP Paribas has slashed its GDP forecasts from the previously announced 5.2% to 3.7% for the current fiscal. The country if registers the said GDP growth will mark it’s lowest ever growth index since 1992.

The analyst body further opined RBI’s cash draining measures as one among the causes increasing the risks to economic growth, especially at a time when the economy is witnessing a sharp fall.

However, BNP Paribas anticipates the economy to regain a pace to 5.3% by 2015, as the weaker rupee opens recovery path in industrial production and export growth. Additionally, the body also suggested on the need for reversing quantitative easing and resuming monetary easing by RBI.

EPC World News Bureau