FICCI-DBS optimistic
The Federation of Indian Chambers of Commerce and Industry (FICCI) and the Development Bank of Singapore (DBS) are expecting the Indian economy to perform well this year despite moderate growth in the first quarter.
The Gross Domestic Product (GDP) growth in the April-June 2016 quarter eased to 7.1% y-on-y from 7.9% in the previous quarter.
“The first quarter numbers released today reported moderation. However, we expect growth to gain momentum in the second half of the current fiscal year,” said FICCI president Harshavardhan Neotia.
Meanwhile, DBS expects a turnaround in consumption spending on the back of good monsoon and higher public sector wages.
Monetary policy support has likely run its course with another 25bp cut is likely to be followed by a prolonged pause.
High frequency fiscal numbers also point to sustained support from public capital expenditure spending, which will pick the slack of slower private sector activity this year, said DBS.
“Pulling these together, we retain our full-year estimate of 7.8% year-on-year growth in fiscal year 2016-17 from 7.6% year before,” said DBS. fii-news.com
