HSBC cuts India’s GDP growth forecast to 4%

  •  HSBC has lowered India’s GDP forecast for the current financial year to 4 per cent from 5.5 percent earlier saying economic uncertainty is likely to weigh on the growth forecast in the coming months.
  • According to the global financial services major, growth is likely to slow in the near term due to tighter financial conditions and higher macroeconomic uncertainty.
  • “In light of this, we revise down our GDP growth forecast to 4.0 per cent (5.5 per cent) for FY2014 and to 5.5 per cent (from 6.6 per cent) for FY2015,” HSBC said in a research note today.
  • According to official figures, the country’s economic growth for the April-June quarter slid to 4.4 per cent, the lowest in past several years, due to a sharp fall in mining and manufacturing output.
  • HSBC, however, believes the slowdown has further to go, saying leading indicators suggest the country’s growth momentum could ease further during the July-September quarter in both manufacturing and services sectors.
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