Reuters Market Eye – Morgan Stanley cuts India’s 2012 economic growth forecast to 6.3 percent from prior 6.9 percent; 2013 forecast to 6.8 percent from 7.5 percent.
On a financial year basis, Morgan Stanley expects FY13 growth at 6.3 percent and FY14 growth at 6.9 percent.
“Bad” growth mix — a combination of high national deficit and an expansionary policy of supporting consumption while private investment slows — has reached its limits, Morgan Stanley says.
Expects RBI to lower repo rate by an additional 100 bps by March 2013, after 50 bps cut effected in April.
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