"Monsoons could add up to 50 basis points (0.5 percent) to the gross domestic product while the economy could also reduce by the same quantum if the country faces another year of drought," BNP Paribas chief economist for emerging markets Richard Iley told reporters here.
In an interview with CNBC-TV18, Richard Iley of BNP Paribas said that India is resilient to global headwinds and growth will be led by a good monsoon and low oil prices.
The Reserve Bank of India will meet on Tuesday amid growing expectations the central bank will cut rates for the third time this year, with expectations it will trim 25 basis points off the repo rate to 7.25 percent.
In an interview to CNBC-TV18, Richard Iley, Chief Asia Economist, BNP Paribas spoke about the Chinese economic data.
Richard Iley, Chief Asia Economist, BNP Paribas says if US fundamentals continue to gain strength and India's macro fundamentals remain as challenging and there is no breakout election result, whatever shape or form that takes, there will be risks to the downside for the equity market over the next six months or so.
Recent dynamics in currency market are a concern and one could see further tightening measures from the Reserve Bank of India (RBI), says Richard Iley, BNP Paribas.
Richard Iley, Chief Asia Economist at BNP Paribas believes although, growth is likely to creep up to positive territory, it is going to be very slow for the industrial sector and the economy as a whole.