1. Growth for the year is 4.7% which is what CARE had also projected.
2. Growth has been supported by the farm sector and the good harvests in both the seasons has led to growth of 4.7% for the year with 6.3% growth in Q4. The question is whether we can sustain this high growth in FY15 on this base and the possibility of el nino.
3. Manufacturing growth remained lack lustre with a fall in output. Quite clearly, the government needs to take affirmative action and the 10-point agenda addresses this issue. But we may expect only a gradual recovery in FY15.
4. Construction witnessed low growth as infrastructure activity was subdued.
5. Within services, the finance group did well aided by the inflow of NRI deposits. Transport, communication and trade did not fare well as its growth is dependent on what happens in manufacturing and mining. Good farm activity provided some boost in Q4.
6. Government support was limited as it cut back expenditure which was acute in Q4.
7. Capital formation had fallen by 200 bps due to surplus capacity, low movement in infra, demand issues and high interest rates.
8. We do not expect any rate change in monetary policy next week.
9. The Budget will be a crucial document to be viewed in July as it is expected that there will be measures to push forward the agenda and hence growth, in a definite way.