Two more institutions joined the growing list of analysts expecting sub-6 per cent growth for India this fiscal, with American banking major Citi and global brokerage CLSA on Wednesday cutting their estimates to 5.4 and 5.5 per cent respectively.
"The stars just don't seem to be aligning for India, with almost all the growth drivers being hit...the government needs to get down to serious business with more action to stem a further deceleration in growth," a note from Citi said, adding that it is scaling down its FY'13 growth estimate to 5.4 per cent from the earlier 6.4 per cent.
The report, authored by Citi India chief economist Rohini Malkani, further said if the drought conditions worsen, growth may slip further to 4.9 per cent.
Meanwhile, the global brokerage firm CLSA also cut its GDP growth estimate to 5.5 per cent from the earlier 6 per cent, stating, "The revised forecast assumes lower growth of zero percent (from a "normal" 3 per cent) for the agriculture and allied sector."
The brokerage's senior economist Rajeev Malik said this may not be a final revision as the monsoon is not yet over.