Weak base of corporate earnings in sync with the lowering of GDP growth in later part of 2017 would also help the revival in the year ahead. "Things have certainly and surely bottomed out. There does not seem to be any fresh bottom; only an uptick," the AYAO noted. The AYAO is based on a feedback from intensive brainstorming done by several ASSOCHAM sectoral National Councils and its top policy organ, the Managing Committee.

In the run-up to the state assembly elections in several politically important states like Karnataka, Rajasthan, Chhatisgarh, Madhya Pradesh, after the high stake Gujarat polls, the political economy is set to tilt towards the farm sector which has been witnessing some stress. The stress in the agriculture sector is traceable to lack of reforms in the rural economy. The farm produce is highly vulnerable to vagaries of weather. "Even when he produces a bumper crop; he does not get a remunerative price with supply chain in-efficiencies creeping in. Despite political promises, several of the states have not been able to reform the APMC Act, which restricts farmers to sell their produce to a particular set of cartels. Besides, the import-export policies for the agri products need to be revisited to help growers realise better prices. "

The coming budget is expected to be heavily tilted towards the farmers while the industrial focus would be on sectors which create jobs. "A realisation seems to be dawning that growth per se is not enough, the benefits must be seen in the form of higher employment. The year 2018 would see policies in this direction".

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