A report by Deutsche Bank says the Indian economy may grow at a rate of 6 percent in 2013-14, compared to 5 percent in the previous financial year.
The foreign brokerage expects the current account deficit (CAD), which touched a record high of 4.8 per cent in 2012-13, to decline to 3.8 per cent in the current financial year on the back of softening commodity prices.
By the end of 2013-14, the brokerage expects Indian rupee to appreciate to 55 per dollar from the current level of around 60 per dollar.
The report mentioned that contrary to the notion of policy paralysis, the past nine months have seen a flurry of reform measures to turn the economy around and backstop the financial system.
It also welcomed recent reform measures like gas price increase, opening up the multi-brand retail sector for higher foreign investments, saying “generally, the response from the authorities has been in the right direction.”
The report expressed reservations over recent measures to reduce the current account deficit like the curb on gold imports and selling, saying they are only “cosmetic”.
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