Worst is over for economy: Analysts

New Delhi: The worst for the Indian economy is over and 2014-15 will see a recovery as stalled projects get implemented, debottlenecking of the mining sector and a recovery in industry on higher external demand, as per various analyst reports.

Rating agency Crisil on Wednesday forecast a 6 per cent GDP growth for 2014-15 compared with an expected growth of 4.8 per cent for 2013-14.

“Continuation of the recent reforms process, normal monsoon and a global recovery will support GDP growth in 2014-15,” said Crisil.

It said that services will rebound in 2014-15 led by higher exports as well as a positive rub off from higher industrial growth. “We believe that the recent momentum on resolving mining issues will continue into 2014-15 and will help address supply-side constraints for industries, particularly, in the steel and power sectors. The integration of south India into the national power grid will help improve power availability for industries in the region,” said Crisil. However, it warned that the outcome of general elections in May could swing the medium term growth outlook either way.

Citi Research said that India should start recovering in 2014. It forecast an upturn from 4.8 per cent in FY14 to 5.6 per cent in FY15.

“We see growth up, inflation down, the currency and rates largely stable and diminishing volatility in the macro. It’s improving, but slowly — with diminishing global tail-risks likely to benefit,” said Citi.