Care Ratings on Wednesday projected the country's gross domestic product (GDP) to grow at 5.2-5.5% in FY15, higher than the 4.9% advance estimate.
Care Ratings on Wednesday projected the country's gross domestic product (GDP) to grow at 5.2-5.5% in FY15, higher than the 4.9% advance estimate.
“It is expected that 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 the business environment and focus on reviving growth,” said the ratings agency in a report. Care added that there would also be less global uncertainty with respect to tapering of quantitative easing measures in the developed world.
It, however, warned that with the met department bringing out its recent forecast for the southwest monsoon at 95% of the long-period average, there was some uncertainty on the performance of the farm sector. “With 56% forecast probability of the monsoon being below normal, the performance of the agricultural sector would be dependent on what finally happens,” it said.
The biggest downside risk would be an El Nino, Care said.
