 "1st quarter revenue growth to hit a 2-yr high")
The momentum in consumption demand is likely to sustain in Q1FY19, with strong numbers coming in from Consumer Staples, Durables and Auto sectors. The banking sector credit growth rising to 13 per cent also underscores gradual improvement on the back of increasing retail lending and rising sales growth of companies.
The cyclical upturn is largely attributed to higher revenue spending by the government, especially in the rural areas, its multiplier effect on aggregate demand, moderate improvement in global trade, depreciation in INR/USD and rising commodity prices.
Also, there is a significant beneficial effect of last year’s low base due to GST transition
