Nomura: “Foreign companies pulling out of India.”
Nomura, a reputed and top notch foreign institution has said in a report that multinational companies have been pulling money out of India at an accelerating rate, moving $10.7 billion out of the country in 2011, up from $7.2 billion in 2010 and just $3.1 billion in 2009.
“At the same time, domestic push factors such as slowing potential growth, the high cost of doing business and regulatory uncertainty have weakened the investment climate, likely causing this erosion. This is not a good sign," Nomura has said.
Goldman Sachs: “Weak investment outlook and domestic policy uncertainties.”
Goldman Sachs said it was cutting its gross domestic product forecast to 6.6 percent from 7.2 percent for the fiscal year ending in March 2013, citing a weaker investment outlook on the back of domestic policy uncertainties.
Morgan Stanley: “Policy makers continuing to delay action to address the unsustainable bad mix of growth.”
On a financial-year basis, Morgan Stanley has reduced its GDP growth estimates to 6.3 per cent and 6.9 per cent in 2012-13 and 2013-14, respectively, from its earlier estimates of 7 per cent and 7.5 per cent.
Standard Chartered Bank: "We revise down our growth forecast to 7.1 per cent for FY13 on relatively restrictive monetary policy and inflation at 7.2 per cent.”
Merrill Lynch: “Worst is over, but there is still pain left."
Merrill Lynch has downgraded India's GDP to 6.5 per cent from 6.8 per cent previously for fiscal 2012-13, though it cited the fallout from the euro zone crisis as its main rationale.
The comments have come in the last one week and we just hope the government is listening.