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India's economic growth likely to be 5.6% in FY15: Citigroup

New Delhi: Driven by reforms momentum and decline in inflation, India is expected to see a growth rate of 5.6 per cent in 2014-15 even as the GDP expansion slowed in the second quarter, says
PTI November 30, 2014 13:42 IST
PTI

New Delhi: Driven by reforms momentum and decline in inflation, India is expected to see a growth rate of 5.6 per cent in 2014-15 even as the GDP expansion slowed in the second quarter, says a Citigroup report.

According to the global financial services major, the reform momentum post the assembly polls, improving liquidity conditions paint a bullish picture of the Indian economy.

For the second quarter of this fiscal year, GDP growth slowed to 5.3 per cent, from 5.7 per cent in the previous April-June quarter.

The growth figure for the first half of this fiscal year stands at 5.5 per cent significantly higher than 4.9 per cent in the same period last year.

"The reform momentum post the assembly polls, improving liquidity conditions and project clearances prompt us to retain our full-year growth estimate of 5.6 per cent in the current financial year as against 4.7 per cent last year," the report said.

The decline in GDP growth rate in the second quarter was mainly on account of subdued performance of agriculture and manufacturing sectors.