JP Morgan on Monday cut India’s gross domestic product (GDP) growth projection for 2014-15 to 5.1% from 5.3% after weak factory output.
“IP (industrial production) debacle is the straw that breaks the camel’s back," JP Morgan said in its 10 October report.
India’s August industrial output rose just 0.4% compared with 2.4% estimated in a Reuters poll.
The Reserve Bank of India (RBI) projects GDP to grow at around 5.5% in the current fiscal year ending March 2015.
A slower growth and a fall in oil and commodity prices increase the chance for RBI to attain its challenging 6% consumer price inflation target by January 2016, JP Morgan said.