1. Subdued domestic outlook: Domestically, some loss of momentum of growth is likely in Q3 of 2013-14, despite a strong pick-up in rabi sowing. 2. Global economic uncertainty: RBI sees the potential risk of a financial market contagion. 3. Addressing inflation critical: Headline CPI inflation is expected to remain above 9 per cent in Q4 of 2013-14 and range between 7.5 to 8.5 per cent in Q4 of 2014-15, with the balance of risks tilted on the upside. 4. Industrial sector a big dampener: Prospects of a pick-up in real GDP growth in the second half of 2013-14, have been dampened by negative growth in industrial production over two consecutive months, sluggishness in services sector activity and the weakening in private consumption and investment demand. 5. Aggregate demand & deficit targets: A pickup in demand in the coming year depends critically on the successful resolution of bottlenecks facing infrastructure projects. It will be a challenging task ahead for government to meet deficit targets in the face of higher expenditures.
Posted on: Tue, 28 Jan 2014 07:30:30 +0000
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