Macroeconomic Forecast India

October 2005 | Macroeconomic Forecasts

India's economy will strengthen during our forecast period until March 31 2006; going by the solid gains in the services and manufacturing sector in Q205 we have revised our full-year GDP growth forecast to 7.9%. Industry and services will continue to boost growth in FY06, although disruptions due to strikes and flooding could cause a dip. The erratic rainfall during August has brought in some ambiguity regarding the kharif crop production - oilseed output is estimated to decline considerably and we could see agriculture take a fair hit in the coming quarter.

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