MUMBAI, Sept 1 Reuters Goldman Sachs has revised lower its growth projections for India after the AprilJune quarterly gross domestic product readings missed market estimates.

The lowerthanexpected growth during AprilJune created downside risk of 40 basis points to current fiscal year growth estimates, Morgan Stanley said in a note.

India39;s real GDP growth increased 13.5 yearonyear in the reported quarter, below the 15.2 forecast by economists polled by Reuters.

The reading was materially below our expectations, said Santanu Sengupta, India economist at Goldman Sachs. Sequentially, GDP growth momentum declined to 3.3 quarteronquarter after expanding 0.5 in the JanMarch period, Sengupta pointed out.

Despite the main drivers of domestic demand coming in line with our expectations, a large drawdown in inventories and statistical discrepancies came as a surprise.

The research house cut the fullyear 2022 GDP growth forecast to 7 from 7.6 and also lowered the current fiscal year estimates by 20 basis points from 7.2.

The slightly weakerthanexpected growth in investments and higher drag from net exports contributed to India39;s GDP falling short of forecasts, Morgan Stanley39;s India economist Upasana Chachra said.

There is a downside risk of 40 basis points to our growth estimate of 7.2 for fiscal year 202223, she said.

Reporting by Nimesh Vora; Editing by Sherry JacobPhillips

Source Reuters