HSBC on 2 September 2013 lowered India's GDP forecast for the financial year 2013-14 to 4 percent from 5.5 percent earlier. As per the official data, India’s economic growth in the April-June quarter decreased to 4.4 percent, the lowest in past several years. The decline in mining and manufacturing output was the reason behind this poor performance.
HSBC stated that factors like RBI's currency stabilisation measures and heightened macroeconomic uncertainty are making consumers and businesses more cautious about spending.
The pressure on growth momentum will pose greater challenges for policy makers who will be trying to stabilise the falling currency, which had declined to all time low of 68.80 to dollar on 28 August 2013 and is currently lingering around the 66/dollar mark.HSBC expect growth to slow in the July-September quarter of 2013 and decrease below 4 percent. HSBC added that growth will slightly recover during the final quarter of the fiscal year as macroeconomic uncertainties get minimized.
When: 2 September 2013