The growth revival in fiscal 2019 would be consumption-led, with mild support from investments. A normal monsoon in 2018, benign interest rates, the return of pent-up demand and implementation of house rent allowance (HRA) revisions at the state government level would support growth, together with the government’s thrust on rural and infrastructure sectors.
Central Statistical Office
With a favourable monsoon so far, India Ratings expects rural demand to recover in FY17. This coupled with urban demand, which will be aided the Seventh Central Pay Commission payout, will give a fillip to the consumption demand in the economy.