New Delhi, June 1 (PTI): Five global financial services majors, including Morgan Stanley, StanChart and Citi, have lowered India's growth prospects to 5.7-6.4 per cent for the current fiscal.
In their reports to clients worldwide, most of them blamed policy inaction by the government as a major roadblock to the Indian economy, which had expanded by 8.4 per cent for two consecutive years ' 2009-10 and 2010-11 ' before growing just 6.5 per cent in the last fiscal.
JP Morgan and CLSA were also bearish on India.
The 5.3 per cent January-March 2012 quarterly growth, again a nine-year low, was "a shock to markets since it was lower than even the most pessimistic forecast... and suggests the driving force behind the India growth story ' the consumer ' has lost momentum," Standard Chartered said in its report.
Standard Chartered lowered its 2012-13 GDP growth outlook for India significantly to 6.2 per cent from 7.1 per cent.
Morgan Stanley scaled down growth projection to 5.7 per cent from 6.3 per cent for the current fiscal, stating "a stagflation type environment is emerging".
CLSA said it would probably revise the 2012-13 forecast downward to around 6 per cent.
"We expect financial year 2012-13 GDP to come in at 6.4 per cent," said Rohini Malkani, economist at Citi India.