Sources have stated that India’s GDP growth for the fourth quarter of 2015-16 is likely to be around 7.1% but slow private sector capex spending and has stressed banking sector will weigh on the economy’s growth potent and according to DBS slow private sector capex spending and a stresses banking sector will weigh on the Indian economy’s growth potential this year.
It is said that much thereby hinges on the stimulatory impact from a normal monsoon and pay commission changes which is anticipated to help the rural sector also bolster consumption demand and overall growth and the services sector is anticipated to compensate for subpar industry growth and weak farm output amid subpar rains and warmer than usual heat.
The report has stated that some of the service indicators like visitor arrivals, service sector PMIs were also positive by making up for the weak financial sector metrics especially loan and deposit growth.
Meanwhile recent macro indicators especially infrastructure industries growth which includes steel and cement output have been positive along with strong auto sales and these have coupled with improved transmission of the easy monetary policy are likely to lower borrowing cost.
