Exports, rising power demand to support manufacturing growth despite rural weakness: ICICI Bank
New Delhi, Sept. 29 -- India's manufacturing growth is likely to remain supported by exports and a strengthening investment cycle in the coming months, even as a below-normal monsoon could weigh on rural demand, according to a report by ICICI Bank Research.
The report said exports should remain a bright spot for manufacturing, while rising power demand is also signalling strength in the investment cycle as capital expenditure begins to improve. It cautioned that weaker rural demand could put pressure on consumption, particularly FMCG demand.
"While rural demand could weaken, exports should remain a bright spot thus powering manufacturing growth. Rising power demand too is positive for capex cycle when investment cycle is seen turning up...
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