India’s economy could grow by 7.5-8% in FY16, as economic growth in the second half is expected to show better results.

The first quarter GDP data is scheduled to be released on August 28.

The analysts predict India’s GDP growth to be around 7% from 7.5% predicted earlier due to drier-than-usual weather conditions. It is lower than government’s forecast of 8.1-8.5% and the Reserve Bank of India’s 7.6% for the year.

The lower rainfall has affected farm output hurting rural income and will affect supply. But a deficient monsoon may not affect the GDP value, basically because in India, Kharif crop and rabi crop compensates each other. Experts at IKIA consulting services are positive that the growth rate will continue

 

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