Higher inflation and wider current account deficit, which are the side effects of the loose policies adopted to push growth during the pandemic, will come into play, forcing the RBI to act even as the "scarring effects cast doubt on growth's durability", Nomura said in its yearly outlook.
Credit growth in the country is unlikely to revive "materially" in near term as demand conditions are still acting as a laggard, says an SBI report.
In an interview, Vinita Bali, former MD, Britannia Industries; Dilip Piramal, chairman, VIP Indutries; Rashesh Shah, chairman and CEO, Edelweiss Group; and Ajay Srinivasan, Chief Executive – Financial Services, Aditya Birla Group, discussed the Budget
Gross domestic product (GDP) data due out on Friday is expected to show Asia's third largest economy expanded 5.3 percent on year in the April-June quarter, according to Reuters poll, the fastest pace in two years and up from 4.6 percent in the previous three months.
Nilesh Shah, MD and CEO of Envision says that the India may be on the cusp of another growth cycle if reforms are taken and investment cycle is kickstarted.