Economy To Grow At 5.6% In FY'15: Survey
NEW DELHI: Indian economy will expand by 5.6 per cent during 2014-15 even as the Reserve Bank is not likely to cut interest rates this year, according to Ficci's latest Economic Outlook Survey.
"The new government guided by the objective of restoring growth and governance has given very positive policy signals in its first 100 days. We see the confidence amongst investors slowly returning and hope that going ahead the momentum on implementation front will build up," said the survey.
The economists who participated in the survey also felt that RBI will consider a cut in policy rates only in the first quarter next year, as household inflationary expectations remain high. The central bank will wait and watch until there are definite signs of inflationary pressure abating, they said.
Retail inflation is expected at 7.8 per cent this fiscal, in sync with RBI's indication earlier this year. The minimum and maximum range for GDP growth in the current fiscal is indicated at 5.3 per cent and 6 per cent respectively, as against 5.3 per cent estimated in the previous round of the Ficci Survey.
This reflects a clear return in optimism and the economic activity is expected to continue with this momentum in the second half of the current fiscal year as well, Ficci said. While agricultural growth is expected to remain steady despite weak monsoon, outlook for the industrial sector seems to have improved considerably. It is expected to grow by 4.7 per cent in FY15, which is 1.6 percentage points more than the growth estimate in the previous survey round in June.
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