Monsoon revival widens growth prospects: PHD Chamber

Monsoon revival widens growth prospects: PHD Chamber

Monsoon revival widens growth prospects: PHD Chamber

No.PR-71
July 19, 2014
New Delhi

 

Monsoon revival widens growth prospects: PHD Chamber

The revival of Southwest monsoon has widened the growth prospects of Indian economy and the real GDP growth is expected to be at around 5.9% for the FY2015 as projected by Ministry of Finance, Government of India in its Economic Survey 2013-14, said Mr. Sharad Jaipuria, President, PHD Chamber of Commerce and Industry.

Industrial sector is showing signs of recovery. IIP has shown an encouraging 4.7% growth for the month of May 2014, Mr. Jaipuria

We believe, with the 5% to 6% growth in industry sector, 3% to 4% growth in agriculture sector and 7% to 8% growth in services sector, the real GDP growth will clock at around 5.9% to 6% during FY2015, he said.

The deficit in the monsoon behavior has been significantly reduced from 43% for the period ending 9th July 2014 to 34% for the period ending 18th July 2014 according to the latest data released by IMD.

The actual rainfall received for the period 1st June 2014 to 18th July 2014 stands at about 217 mm as against the normal rainfall of around 328 mm.

The late revival in monsoon has boosted up the sowing activity. Presently, around 24.3% of the normal area under kharif crops have been sown upto 11th July 2014. Going ahead, with the expansion in the monsoon, the sowing process is expected to move at a faster pace in the coming times.

We believe that revival in monsoon and announcements revealed in the Union Budget 2014-15 for agriculture sector such as focus on increasing irrigation facilities, farm markets, financial help to landless farmers and Kisan TV to provide real time information to farmers would help to increase farm productivity in the coming times.
ENDS
Koteshwar Prasad Dobhal
Consultant (PR)