Deutsche Bank pegs India's GDP growth at 6 per cent in FY14 - NDTV

Mumbai: Foreign brokerage Deutsche Bank has pegged India's gross domestic product (GDP) growth rate at 6 per cent for the current fiscal year following recent policy measures, even though vulnerabilities continue on the external front. The economy expanded by a near decade-low of 5 per cent in fiscal year 2012-13 due to a slew of problems, including a slowdown in investments. "While really big bang measures like passing the GST Bill seems unlikely before the 2014 elections, there is enough in the policy pipeline to keep investors interested in," the report said. We are expecting growth to move up to 6 per cent, the report said. It also welcomed recent reform measures like gas price increase, opening up the multi-brand retail sector for higher foreign investments. "Generally, the response from the authorities has been in the right direction," the brokerage firm said in its report. "Contrary to the no tion of policy paralysis, the past nine months have seen a flurry of reform measures to turn the economy around and backstop the financial system," it added. However, the report expressed reservations over recent measures to the current account deficit like the curb on gold imports and selling, saying they are only "cosmetic". Expecting the current account deficit, which touched a record high of 4.8 per cent in FY13, to narrow down to 3.8 per cent, it said factors like the softening commodity prices will help the account deficit and not the curbs on gold imports. The report also sees the rupee recovering to 55 per dollar by the end of the fiscal year. "We see the fiscal line being held by the authorities this year, and expect a slew of measures to stabilise the rupee and revive investor sentiment in the months ahead," it said. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFI8dLhTIp98Oy3kY0pj7DSl96Kng&url=http://profit.ndtv.com/news/economy/article-deutsche-bank-pegs-indias-gdp-growth-at-6-per-cent-in-fy14-324160

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