SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up
  1. Home
  2. Stock Market News
  3. India Ratings ups GDP growth forecast to 5.7%; cautions against fiscal slippage

India Ratings ups GDP growth forecast to 5.7%; cautions against fiscal slippage

08 Aug 2014 Evaluate

Domestic rating agency India Ratings has revised its FY15 gross domestic product (GDP) growth forecast to 5.7% from 5.6% on a good show by the industrial sector, but highlighted that it was impossible for the government to meet its ambitious fiscal deficit target of 4.1%. The agency asserted that though the Union Budget addressed certain supply-side issues plaguing the economy, but just a single budget or single year’s policy reform would not be enough to ensure a non-inflationary, sustained and higher economic growth.

The domestic rating agency, which is a part of the international rating agency Fitch Group, expects industrial growth to improve to 5.1% for FY15 against the earlier estimate of 4.1% and further noted that this growth if achieved would be strongest since the 7.8% notched up in FY12, adding that factors like a 4% jump in factory output for the first two months of the fiscal and 4.6% growth in the core sector in the first quarter had already been pointing to the 'beginning of a broad-based industrial recovery.

However, on the fiscal deficit front, it highlighted there will be a fiscal slippage in FY15 and the government will not be able to achieve its target of reducing the fiscal deficit to 4.1%. Further, it also estimates Current Account Deficit (CAD) to widen to $48.7 billion, which is 2.2% of the GDP, mainly due to the improved industrial growth outlook which would boost imports.

On the inflation front, the agency expects Wholesale Price Index (WPI) as well as Consumer Price Index (CPI) based inflation to decline to 5.4% and 7.9% respectively in 2014-15. However, this was based on premise that the government would intervene timely and efficiently in the agricultural commodity market, should the prices begin to rise owing to the deficient monsoon.

Register Now to get our Free Newsletter & much more!
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×