RTTNews - UBS, a global financial services firm, revised its economic growth forecast for India upwards to 6.2% for the year 2009-10 against its earlier forecast of 5.2%, citing lower interest rates, smaller excess capacity and a fall in risk aversion, reported media. The RBI's forecast for the year was 6%.

UBS economist Philip Wyatt reportedly stated in a research note that the main reason for the revision is a more flexible consumer. He noted that a full-blooded recovery in fixed investment would need stronger profits, while consumption could benefit soon from lower interest rates once confidence recovers.

The firm estimates industrial output growth to pick up to 5% to 8% in the fiscal year ending March 2010, from 2.4% in the past year and expects a positive move to two digits in 2010-11. It anticipates exports to remain slow in the current year and added that this year would be a stabilization year for real GDP.

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