Goldman Sachs on Thursday came out with a positive outlook for India, saying the economy was likely to grow by 6.5 per cent in 2013, within days of Moody’s giving a stable outlook on the country’s sovereign rating.
The country’s GDP is likely to grow by 6.5 per cent in 2013 driven by favourable external demand outlook and domestic structural reforms push, a Goldman Sachs report said. According to a research note by the investment banking major, growth is likely to pick up further to 7.2 per cent in 2014. This is on the back of “easing financial conditions, in part driven by some reduction in policy rates, a continuation of reforms boosting confidence, and a normal agricultural crop,” Goldman Sachs said.
India had been growing around 8-9 per cent before the global financial meltdown of 2008. The growth rate in 2011-12 slipped to a nine-year low of 6.5 per cent and in the first quarter ended June 30, the economy grew by 5.5 per cent. The U.S.-based financial major also said that S&P CNX Nifty Index might climb about 14 per cent by the end of next year and upgrading its recommendation on the Indian stocks to ’overweight’ from ‘market-weight’ The 50-share Nifty could rise to 6,600 by December 2013, Goldman Sachs said. There was no year-end target mentioned for BSE Sensex.—PTI