Home / Knowledge / News / Textiles / India Ratings projects growth rate at 7.7%
India Ratings projects growth rate at 7.7%
28
Apr '15
A leading domestic rating agency India Ratings has projected a 7.7 per cent growth this fiscal driven by domestic demand. The projection is marginally low from the official growth forecast of 7.9 per cent.

"We expect GDP to grow by 7.7 per cent, up from 7.4 per cent in FY15, driven by a further pick up in private consumption demand. Consumption demand is expected to expand 8.1 per cent in FY16 against 7.1 per cent in FY15 and 6.2 per cent the year before," India Ratings said in a note. Its optimism is based on the significant moderation in inflation and inflationary expectations

According to Ind-Ra’s note, the share of private consumption in GDP is around 60 per cent. Even investment and government spending will provide adequate support to consumption-led GDP growth, it said

Despite conflicting reports of the monsoon forecast, the agency expects the agriculture to grow at 2.1 per cent under the assumption of a normal spread of monsoon in 2015. The note concedes the agricultural growth could be lower in case of a sub-normal monsoon.

According to the note, the government’s focus on 'Make in India' and 'ease of doing business' and the successful auction of coal mines may help push industrial growth to 6.5 per cent from 5.9 per cent last year on the industrial front.

The note projects WPI inflation averaging at 2.4 per cent and consumer inflation at 5.6 per cent in FY16. Retail and WPI inflation declined to 5.2 per cent and to a -2.3 per cent in March 2015, respectively.

It said soft global commodity/ crude prices, low growth in the minimum support price, lower pricing power of manufacturers and effective government intervention in the food market, would keep the inflation within the glide path of the RBI and would offset the risks on inflation following the unseasonal rains in March and an expected less-than-normal monsoons.

The report projects the benefits of lower oil prices which saved $ 60 billion in import bill last fiscal, to continue this fiscal as well. That could bring down the current account deficit for FY16 to $ 22.5 billion or 1 per cent of GDP from $ 23.1 billion in FY15 or 1.1 per cent of GDP.

The report expects the RBI to add $ 74.2 billion to the forex reserves this fiscal, putting pressure on the rupee to rise. However, it expects the rupee in the 61-64 band against the dollar. (SH)

Fibre2fashion News Desk - India


Must ReadView All

Israeli minister announces tax cuts on consumer goods

Apparel/Garments | On 14th Dec 2017

Israeli minister announces tax cuts on consumer goods

The Israeli Government will slash taxes by $227 million, finance...

Courtesy: Kelvin Techstyles

Apparel/Garments | On 14th Dec 2017

Kelvin Techstyles fuses style and function in city apparel

Fusing style and function in outdoor clothing, Roseville,...

India’s WPI inflation for textiles up 0.3% in Nov 2017

Textiles | On 14th Dec 2017

India’s WPI inflation for textiles up 0.3% in Nov 2017

India’s annual rate of inflation, based on monthly wholesale price...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Top executives
Textile industry, India

The event should be organised every year

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Urmil Arya

Sushila International, a well established textile organisation established ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search