Journalism of Courage
The Indian economy is likely to grow by 5.6 per cent in the next financial year but a stable government after elections, a pick-up in investment and good monsoon are vital factors, Citigroup said in a report.
An occurrence of El Nino could lead to deficient rainfall in India and consequently pose a downward risk to agricultural output, the report said. El Nino is a series of climatic changes across Pacific Ocean due to warm ocean water temperatures.
An improvement in investment would spur economic growth. Companies would, however, wait for elections before commencing operations, it said.
“A stable government post elections remains key to a capex revival,” the report said, adding that the key to moving to a higher growth trajectory would be reviving investments to pre-crisis levels, especially the private sector through continued efforts to ‘unlock’ stalled investments.
According to advanced estimates by the Central Statistics Office, India’s GDP in the current fiscal would improve to 4.9 per cent from 4.5 per cent a year ago, mainly on account of the good performance of the farm sector.
