- CAD in India to come down below 3 pc this fiscal: PMEAC chief C RangarajanAgenda for new govt in 2014: Structural reforms key for the Indian economy, indicates Societe GeneraleIndia to hit 6 pct growth next fiscal, better H2 in FY'14: Montek Singh AhluwaliaIndia registers better-than-expected GDP growth rate of 4.8% in Sept quarter
in August, Mayaram had said the government had given approvals to projects having investment potential of $27 billion between January and April, which would have a mobilisation time of six to seven months.
"We see robust agriculture output in the third quarter, given the cues from Q2. So as such, it will lend support to consumption revival and recovery in the third and fourth quarters. We continue to maintain 4.9% for the full year. The RBI rate decision will be contingent on incoming inflation data, though we anticipate incremental softening of food prices month-on-month, but the headline inflation both CPI and WPI may range around 10% and 7% respectively," said Shubhada Rao, chief economist at Yes Bank.
Industry bodies, however, were less optimistic of a strong recovery and pressed for a rate cut to boost expansion. "The two drivers of growth this year · a good monsoon and exports · are insufficient to pull the economy out of the present slowdown, as mining, manufacturing and service sector output remains subdued. The problems accruing from low investment and consumption demand together with high food inflation are holding back the economy," said Chandrajit Banerjee, director-general of CII.
“No doubt the improved performance in agriculture, electricity, construction and exports as well as the modest recovery in manufacturing are positives which could augur well for the economy for the current fiscal, but the need is for an even better growth in these sectors. The data for October and November 2013 could reflect a pick-up in demand owing to the festive season and this could be reflected in the third-quarter GDP figures but at the current pace of growth, a firm rebound may not be expected before the end of the fiscal, when the impact of the monsoon would be felt on rural demand and the impact of project clearance by CCI might become visible," Banerjee added.
The farm sector contributed in a big way to economic growth in the September quarter and expanded 4.6%, compared with 1.7% a year before and 2.7% in the previous quarter. Construction grew 4.3% from 3.1% a year ago and 2.8% in