Foreign investment firm Credit Suisse First Boston said on Thursday that delayed monsoon is unlikely to have a "significant impact" on India's economic growth pegged at 5.7 per cent in 2004-05.
CSFB also said Indian rupee is slated to appreciate to Rs 44.5-45 a dollar in the coming 3-6 months.
Commenting on the overall economy, it said, "The impact of lower than expected monsoon rains is unlikely to have significant impact on domestic demand. We maintain our 2004-05 GDP growth forecast of 5.7 per cent."
Dismissing any concern over balance of payment and fiscal deficit, CSFB said changes in interest and tax rates on non-resident Indian deposits are unlikely to weaken the balance of payment substantially.
"Strong private transfers and software service growth, along with pick-up in portfolio flows and large stock of foreign reserves are likely to cushion downside surprises in net capital outflows from NRI accounts and high oil prices," it said.
CSFB expects BoP to remain at surplus of $20-25 billion in 2004-05 with rupee gaining against the greenback.
