Brokerage major CLSA has forecasted India’s gross domestic product (GDP) growth in the next fiscal at under 5% whereas the figure for FY11 has been put at under 7%. The company said that it had slashed the estimates across the board though it still expected India and China to outperform in terms of growth.
It added that India had more problems on the fiscal front, which would put a cap on India’s ability to use fiscal manoeuvring to get out of the slowdown, when compared with China.
A number of researchers and analysts have put India’s growth in the FY10 at around 5%. The International Monetary Fund (IMF), for example, expected India to grow by 5.1% in the calendar year 2009. However, most of these have refrained from projecting a figure for FY11, saying that it was too uncertain at present.