Economy
When the new government
assumed control two years
ago, the Indian economy
was showing tentative
signs of stability. While a
possible external sector
crisis, triggered by the ‘taper
tantrum’, was averted by
RBI, the economy needed a
series of structural changes
to restore macroeconomic
balance and enhance long-
term growth potential.
Two years hence, amid a
dim global backdrop, Indian
economy has emerged as
a ‘relative’ outperformer,
offering global investors a
healthy mix of growth as
well as macroeconomic and
political stability.
The Central Government,
over the last two years, has
covered a lot of ground with
respect to various national
initiatives: the ease of doing
business, FDI liberalization,
financial inclusion, reviving
infrastructure investments in
roads and renewable energy,
co-operative and competitive
federalism as well as subsidy
reforms accompanied by
some landmark measures
like Insolvency and
Bankruptcy Code and UDAY
Scheme for restructuring
state discoms.
In a global environment
mired in volatility, we
believe that India’s growth
in 2016 predominantly
hinges on domestic drivers.
While a multi-party federal
democracy inherently
slows decision making, the
intent, vision and desired
path of growth has been
clearly laid out. We believe
that all reforms – large
and incremental – are
beginning to come together
to pave the way for growth
outcomes to become more
tangible in the coming
quarters.
A closer look
Powered by a sharp rise in
manufacturing and gains
from benign crude oil
prices, the Indian economy
is expected to grow 7.6%
in 2015-16 against 7.2% in
2014-15, despite the global
turbulence and volatility.
Manufacturing growth for
2015-16 is likely to be at 9.5%,
much higher than the 5.5%
growth in 2014-15.
Inflation measured by the
Consumer Price Index
(CPI), which was likely to
Management
discussion and analysis
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KAJARIA CERAMICS LIMITED
