Economy To Pick Up Pace In The Second Half Of The Year: Assocham

As per a report by the Associated Chambers of Commerce and Industry (Assocham), India’s economy may progress in the second half of the current financial year, due to a likely rise in sales and improved capacity utilisation. Sixty-six per cent of those polled in the Assocham Bizcon Survey expected improved sales and capacity utilisation during the second half but remained uncertain on fresh investment.

The other factor that encourages optimism is active policy reform, which is followed by a stable exchange rate for the rupee, despite uncertainty globally on account of the US Federal Reserve’s next policy move. The slowest pace in the growth of the economy was at 7.1 per cent in April-June due to unresponsive performance of the mining, construction and farm sectors.

The Finance Ministry expects the economy to grow by 7-7.75 per cent in the current financial year, against 7.6 per cent in the previous year.