 "Citigroup revises FY14 GDP estimates to 5.7% from 6.2%")
"Taking into account the 5% GDP estimate for FY13 and revisions to past data, we are revising our FY14 GDP estimate down to 5.7% from 6.2%," Citigroup said in a research note.
The government's first GDP estimate for FY13 pegged growth at 5%. Citi's projection was 5.4% for FY13 and consensus was 5.5%.
According to the report, growth has bottomed out and there is likely to be a recovery across all sectors, with agri growth reaching 3%, industry at 4.4% as trends in manufacturing improve.
Services will move up to about 7% and accordingly GDP would move up to 5.7%, it said.
Though the government has taken several measures since September 2012 and growth is likely to have bottomed out in the third quarter of FY13 (October-December) and continued action from all policy makers is needed to reverse the decline across all the macro variables, the report said.
"If current trends in projects stalled/new intentions do not improve, the headline number could be lower by about 60-80 bps," the report said.
In recent times, the Indian government has unveiled a slew of reforms, including FDI relaxation in retail and aviation sectors and partial de-regulation of diesel prices.
Slowdown in growth was mainly due to services sector, whose growth rate dropped sharply to 6.6% in FY13 as against 8.2% in FY12.
Farm growth was impacted by weak monsoons while industry trends moderated to 3.1% due to manufacturing and electricity.