MUMBAI/BANGALORE India's top companies are expected to report their weakest pace of growth in two years in the quarter to March, held back by drought and slack demand - a slowdown analysts and companies expect to reverse with an 'above-normal' monsoon in 2016.
NEW DELHI India's crucial monsoon rains are expected to be above average in 2016, the weather office said on Tuesday, easing fears over farm and economic growth after two straight droughts hit rural incomes and agricultural output.
MUMBAI India's crucial monsoon rains are expected to be above average in 2016, the weather office said on Tuesday, easing fears over farm and economic growth after two straight droughts hit rural incomes and agricultural output.
"Monsoon has a big linkage effect on not only rural income but overall growth and inflation and if we have another sub-par monsoon, then contribution of farm sector to GDP will be near zero."
GAURAV KAPUR, Senior Economist Royal Bank of Scotland, Mumbai
"Fertiliser consumption will improve in 2016/17 season, especially due to better demand for winter-sown crops like wheat. Imports of fertilisers will not rise despite good demand as we have ample inventory. The drought had squeezed sales last year."
U.S. AWASTHI, Managing Director IFFCO, New Delhi
"I was expecting a lower monsoon forecast. However, this is just the first estimate and we need to see the second estimate, which will be closer to the monsoon time, for clarity on its impact on growth and inflation. I don't expect any change in RBI's policy stance based on this monsoon forecast as they have just lowered the interest rates and will wait the second round of forecast."
INDRANIL PAN, Chief Economist IDFC Bank Ltd, Mumbai