Singh’s Advisers Cut India GDP Forecast and Signal High R

Indian Prime Minister Manmohan Singh’s economic advisory body cut its growth forecast and signaled interest rates wouldn’t fall until the rupee stabilizes and inflation eases. Bonds, the currency and stocks fell.

Asia’s third-biggest economy may expand 5.3 percent in the year to March 2014 from an earlier estimate of 6.4 percent, Chakravarthy Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, said in a twice-yearly report released today. That compares with a 5 percent growth rate last year and an average expansion of 8 percent over the past decade.