the banking sector has a lot to do with the economic situation. One expects the economic situation to improve and consequently the level of stressed assets can fall.
On the price front, I expect inflation will fall and brought under control.
RBI Governor Raghuram Rajan has already said he wouldn’t raise rates just for one factor — inflation — and would take other factors to take a decision.
I am looking for some relief on the interest rate front.
MD, Mahindra & Mahindra
‘Interest correction and economic revival will lead to resurgence of growth’
While the impact on the rural economy has not been as severe as that on the urban India, consumption in the rural economy is also expected to witness a surge and need-based products such as goods carrier, people carrier and tractors will continue to maintain the average growth rates.
I clearly see the benefits of good monsoon in 2013 to be there in 2014 and even the January harvest is expected to be good. The first quarter of the calendar 2014 will benefit from the good monsoon in 2013 and good January crop. After elections get over things should settle down and begin to improve from the middle of 2014.
The festival season in 2014 will see the revival of the economy and infrastructure growth as they will bounce back this year. Inflation should also come down as the food prices have started to soften and I expect the interest rates to soften in the second half of the year. Interest correction along with economic revival will lead to resurgence of growth.
The year should witness demand for automobiles and consumer durables pick up as growth comes back.
Vice Chairman & CEO, HDFC
‘Interest rates should come down by
25 basis points in the first six months’
I do not think there will be an increase in the interest rates by the RBI over the next three months but I think that interest rates will begin to soften after April. In the next six months, interest rates should come down by 25 basis points. The RBI is getting some comfort as food prices have started to come down. Earlier, high food prices led to a high inflation as it has a high weightage and a fall in food prices will lead to a fall in the overall inflation. This will