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Only Some Sectors Driving India's Economic Recovery: ICRA Report

The ratings agency also expects the fiscal situation to weigh on project execution.

Policy Pulse
Publish Date: Dec 30 2015 3:08PM | Updated Date: Dec 30 2015 4:20PM

Only Some Sectors Driving India's Economic Recovery: ICRA Report

The recovery in Indian economic activity remains tentative and narrowly focused in sectors such as roads, railways, power transmission and passenger vehicles, ratings agency ICRA has said in a report.

 

The report on the Indian economy says the consumption boost from the Seventh Pay Commission award is unlikely to lead to an immediate investment in capacity expansion, as utilisation is still low at 71.5% in first quarter of current fiscal though up marginally from 70.2% in the corresponding quarter last fiscal.

 

The ratings agency also expects the fiscal situation to weigh on project execution. “Availability of budgetary outlays for financing of infrastructure may emerge as a constraint to the pace of execution in FY17.”