There was a catch up seen by 3.5 per cent in the case of civil aviation cargo and 3.9 per cent by major ports during Q2 of 2015-16.

The overall industrial growth is seen at 7.5-7.8 per cent for the entire FY 16, while the services should expand well over nine per cent with agriculture and allied picking up to 2.8- 3 per cent.  The confidence in industrial growth is largely being now driven by manufacturing, electricity and capital goods, while mining would improve as well in the remaining months of the year, it stated.

The winter months, from October onwards, helped by the festival season and pick up tourism in states like Rajasthan, Goa, Kerala, Delhi, Madhya Pradesh augur well for the transportation, hotels and trade. Construction activities seem to be picking up, especially in the roads and highways while some green shoots are visible in micro markets of real estate as well. 

According to the review, while rains have remained deficient for two successive years, the negative impact on the Rabi crops would not be as bad as Khariff. "The latest reports suggest the wheat sowing is still in progress in several parts of the country and if we get some showers in the next three to four weeks and do not face any unseasonal rains in March, Rabi crops mainly of wheat, rice ,grams and oilseeds like mustard should help the farm sector. Should these crops improve their prospects the livestock activities also look up giving vibrancy to the agro economy, which is so vital to the country", the Review said.

(Continued on the next page)