DBS Bank lowers India’s FY18 GDP growth to 6.6%

Singapore’s DBS Bank on Tuesday lowered India’s gross domestic product growth forecast for the current fiscal year to 6.6 per cent, from the previous 6.8 per cent, citing that businesses was “still adjusting” to the new GST regime and there were “limited room” for fiscal support. The bank, however, expects that Indian economy will recover in FY19 and achieve a growth rate of 7.2 per cent. The Indian government will play a balancing act between reviving growth whilst maintaining its macrostability credentials in fiscal 2019. The recent rating upgrade from Moody's was a big boost to sentiment and is likely to lower offshore borrowing costs for Indian companies, it said in a country report.