Spurred by policy reforms, fall in food inflation and lower fuel prices, “India’s economic growth as measured by Gross Value Added at basic prices to grow by 8.4 percent in financial year 2016,” Dun & Bradstreet said in a research note.
NDTV goes on to report the research firm’s view that the focus on public investments in infrastructure along with improving income growth is likely strengthen aggregate demand. Downside risks to these forecasts are tepid recovery in some developed markets, below normal monsoon, direction of Foreign Institutional Investor flow following a rate hike by the U.S. Federal reserve, and non-revival in corporate investment.
The demand for automobiles is expected to receive a boost; participation from Real Estate Investment Trusts and Alternative Investment Funds is expected to aid investments in the real estate sector; demand for data services will be higher as service providers extend high speed 3G and 4G network to smaller towns; revival in economic activity during FY16 is expected to support consumption of various consumer products and drive the growth of the Indian retail sector, the report added.
