Fundamentals improving; at least 5.5% growth next year: HDFC MF

MUMBAI: Country's largest asset management company HDFC Mutual Fund is optimistic of India's growth prospects going forward as it sees most fundamentals improving, a top company official said.

"I would look at it (growth) optimistically...most of the fundamentals and corporate performance seem to be improving going forward. Therefore, there is a reason to believe that our growth trajectory will be higher. The debate is only how much higher and how fast the growth can recover," Managing Director of HDFC Mutual Fund, Milind Barve told PTI in an interaction here.

Talking about some of the parameters, Barve said that improving current account deficit, fiscal deficit and falling inflation indicate improving fundamentals of the domestic economy.

"Clearly, we have seen last two years of low growth. We see growth going forward picking up. We have not achieved the growth rate to our potential. We are looking for a recovery in next one year and in that context, we expect, that some of the concerns that the economy has faced like current account deficit, fiscal deficit and inflation seem to be improving going forward," he added.

When asked to quantify the GDP numbers for the next fiscal, Barve said that it would be at least 5.5 per cent.

"We believe that growth will recover...FY15 number should be at least 5.5," he said adding that it is important that we get back our trajectory of growth upwards.