Economy surges Ahead
As per the latest reports, industrial production has grown by almost 5% during February 2015, indicating strong manufacturing activity in our country. It is heartening to note that the international rating agency, Moody has raised India's credit rating outlook to positive from stable, which itself is an endorsement to the new Govt's. initiatives at the centre for economic revival. As per the revised methodology for calculation of GDP, the economy is poised to grow at 7.4% during the current fiscal. The Govt. has, however, forecast GDP growth at 8% for the year 2015-2016.
With the cut in interest rates by Reserve Bank of India on two occasions during this year, analysts have predicted that the economy will be growing at a steady rate. Manufacturing sector, which contributes for more than 75% in the overall economic index, will undoubtedly induce optimism in this direction. Due to unseasonal rains and hailstorm in some parts of the country recently, it is likely that agricultural output will be to some extent affected. As most of the states have concurred with introduction of the proposed GST regime from the next fiscal, we can reasonably expect a better economic scenario compared to the last few years. This favourable climate is also likely to infuse more foreign institutional investments in the economy.
The colorant industry, which had a set back during the last few years in the light of global slowdown and lack of adequate demand can foresee better days in the current financial year. What is need of the hour is a prudent strategy to combat the imponderables to achieve better results. We are sure the industry captains will focus on this, while formulating strategies for growth.
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