A normal monsoon is critical to India's continuing recovery, as a rise in agricultural growth could add 30-45 bps to GDP growth, says a Standard Chartered report. As uncertainties from overseas mount, the the performance of monsoon has gained significance in India's growth this year. On the Reserve Bank's policy rate stance, the report said there is a likelihood of another 25 bps rate cut in this fiscal year. "A faster-than-expected decline in price pressures in food due to a normal monsoon is likely to make room for another 25 bps of rate cuts in 2016-17," the report said. According to the global financial services major, domestic factors are likely to shape India's economic growth prospects amid global economic and political uncertainty and hence, performance of monsoon has gained importance in this fiscal year.

Source: dna July 04, 2016 03:33 UTC