Morgan Stanley cuts India’s growth forecasts

Mumbai: Morgan Stanley cuts India’s 2012 economic growth forecast to 6.3% from prior 6.9%; 2013 forecast to 6.8% from 7.5%.

On a financial year basis, Morgan Stanley expects FY13 growth at 6.3% and FY14 growth at 6.9%.

“Bad” growth mix -- a combination of high national deficit and an expansionary policy of supporting consumption while private investment slows -- has reached its limits, Morgan Stanley says.

Expects RBI to lower repo rate by an additional 100 bps by March 2013, after 50 bps cut effected in April.