HSBC cuts India GDP FY13 forecast to 5.2 percent

MUMBAI Thu Jan 10, 2013 11:24am IST

Workers walk in front of a multi-story commercial building under construction on the outskirts Ahmedabad May 31, 2012. REUTERS/Amit Dave/Files

Workers walk in front of a multi-story commercial building under construction on the outskirts Ahmedabad May 31, 2012.

Credit: Reuters/Amit Dave/Files

MUMBAI (Reuters) - HSBC further cut its India growth forecast for the current and next fiscal years, saying the slowdown in the economy has become more structural than cyclical.

HSBC cut its GDP forecast for the year ending in March to 5.2 percent from 5.7 percent, and its forecast for the next fiscal year to 6.2 percent from 6.9 percent, according to a report released on Thursday.

"We think the reform process will take time and it will likely be another three years before growth returns to 8 percent on a sustained basis," it said.

HSBC had previously cut its India growth forecasts for fiscal 2013 and 2014 in September.

(Reporting by Subhadip Sircar; Editing by Rafael Nam)

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