Morgan Stanley raises India's GDP forecast to 5.4 pc for FY13
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However, the persistent weakness in the investment cycle has been the most important factor keeping growth at low levels in the current cycle, Morgan Stanley said.
On the policy front, the report said the RBI may start the easing cycle in the first quarter of 2013 and policy easing could be limited to about 75 bps in 2013.
"We believe that even as inflation starts to ease from 1Q2013, it may remain above the RBI's comfort zone for longer.
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