India likely to grow less than 6% in FY13: Survey

Reuters Market Eye :India’s GDP growth will likely be less than 6% for FY13, according to 72% of respondents in a client survey by Standard Chartered Bank.

Of the 125 corporate respondents, 20% said growth may be even less than 5%.

However, 85% of the respondents said India can return to its pre-crisis growth levels of about 9% before 2016. The view is likely driven by the fact that the 2014 general elections will effect a change in the political scenario which will be more conducive to economic growth, the bank said in a note.

Only 27% of the respondents thought RBI should reduce interest rates by more than 75 bps. Most of the clients (66%) expected a 0-50 bps reduction in rates.

Views on the rupee were mixed with 40% of the sample expecting USD/INR to be above 57 by end-September, whereas 4% felt it could come in above the psychological level of 60. Another 40% expect a 55-57 range by the end of September.