Growth To Slip To 4.8Percent In Fiscal Year14, To Improve Next Year: Crisil

NEW DELHI: India's growth rate in the current fiscal is expected to slide to 4.8 percent and the prospects for 2014-15, which currently appear to be bright, hinge on the stability of the new government. "We believe growth will print at 6 percent for 2014-15, up from our 4.8 percent estimate for 2013-14," Crisil said, adding that a normal monsoon would cushion growth and help in taming inflation. Normal monsoons, reforms and global recovery would aid the growth process, but cautioned that growth could weigh in below 5 per cent yet again if the above assumptions do not play out.

"We believe the pick-up will be aided by implementation of stalled projects, debottlenecking of the mining sector and a recovery in industry on higher external demand," Crisil said in its report 'India Economic Forecast'.
The growth rate in 2012-13 slipped to decade low of 5 per cent. The International Monetary Fund yesterday projected economy The growth rate in 2012-13 slipped to decade low of 5 per cent. The International Monetary Fund projected economy to grow at 4.6 per cent this fiscal.

Crisil said the next fiscal could be a year of new leadership and old challenges. "The outcome of general elections could swing the medium term growth outlook either way. Political uncertainty is, therefore, a huge weight on the economy at this juncture,"  he said.

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