A sliver of hope for the Indian economy picking up steam in FY2014 could be spoiled by the slew of elections in Karnataka, New Delhi and Rajasthan this year and general elections next year making economic reforms an uphill task, according to a study by trade body Assocham.
Quoting its “Economic Outlook Report”, Assocham said: “The political environment is likely to get murkier making it that much more difficult for the government to push through reforms.”
Its confidence in the economy doing better in FY2014 stems from factors that include an uptick in exports, improvement in the US economy, normal monsoon forecast and “bottoming out” of domestic industrial expansion. The trade body pegged the GDP growth at tad above 6 per cent.
The report said: “The global economy and to some extent the Indian economy seem to be shifting the cyclical track, which will work to the advantage of net importer countries like India. Exports which have moved in the growth trajectory are expected to gain further momentum, more so in the second half of the FY 2013-14.”
Dwelling on Europe, it said, “Except for Europe where recovery looks a far cry, the problems in the rest of the world seem to be edging out.”
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