"The slowdown story is clearly evident. As anticipated, mining and manufacturing growths have slipped sharply compared to the previous fiscal. The resilience of the services sector is still evident and this is preventing an even sharper drop in India's growth. For the next fiscal, on a macro-fundamental basis, we see limited drivers for any growth upswing - private consumption is likely to stay steady while investment demand may take a bit of time to pick up. The fiscal space also does not afford a chance to pump-prime the economy while the external atmosphere is likely to stay harsh. We see the RBI to start dropping the Repo rate in April 2012 and ease around 100-125 bps in FY2013".
Indranil Pan, Chief Economist, Kotak Mahindra Bank