Care sees India's economic growth at 5.2-5.5% in FY 15

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Care sees India's economic growth at 5.2-5.5% in FY 15
Leading rating agency Care Ratings expects a pickup in the Indian economy in the current fiscal year which began on April 1, 2014 amid hopes that a new government at the centre may take measures to revive growth, kick-start long stalled reforms and boost investment.

The rating agency expects Asia's third biggest economy to expand by 5.2 to 5.5 per cent in FY 2014-15.

According to the Central Statistics Office (CSO), India's economic growth may have stood at 4.9 per cent in FY 2013-14 after growth slumped to a decade-low of 4.5 per cent in the previous fiscal.

"It is expected the economy in general will improve in FY15, albeit gradually on the premise that a strong government would be in place after the elections which will reduce uncertainty in business environment and focus on reviving growth ", Care Ratings said in a report.

A stable and reform oriented government may reduce policy uncertainty, contributing to an improved investment and business climate, auguring well for the country's economic outlook.

Care Ratings also warned of an upside risk to inflation as the El Nino condition may hurt monsoons, crimping agricultural production and thereby raising prices of food items.

The rating agency expects average consumer inflation at 7.5 per cent in FY 2014-15.

Read more about: care
Story first published: Friday, May 2, 2014, 9:10 [IST]
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