A day after the Prime Minister's Economic Advisory Council said India's GDP may grow by 6.75 per cent in the current fiscal, global financial major Citi today maintained its forecast at 5.8 per cent.
"We maintain our FY'10 GDP estimate of 5.8 per cent, given that winter crop sowing has not yet begun and the outlook for agriculture remains cloudy," Citi said in its Global Economic Outlook and Strategy.
The PMEAC, headed by former Reserve Bank Governor C Rangarajan, yesterday said India's GDP growth rate could range between 6.25 per cent and 6.75 per cent. On average, it could grow around 6.5 per cent.
The monsoon season for the current year turned out to be the worst in over a decade with the rainfall at 77 per cent of the Long Period Average of 89cm, below the IMD's forecast of 93 per cent, Citi said.
"However, incremental data (industrial production, auto sales, PMI) continue to post positive surprises. Recent industrial production numbers indicate that government's stimulus measures could offset the impact of negative agriculture growth," Citi said.
