Lower retail inflation and normal monsoons will boost consumer durables demand in the coming months, India Ratings and Research said today.
The rating agency, however, said investment demand remains tepid.
Consumer Price Index (CPI) moderated to 4.8 per cent in March 2016 from 5.3 per cent in the previous month.
Non-food and food prices slowed to 4.6 per cent and 5.2 per cent in March 2016, respectively, from 5.2 per cent and 5.3 per cent in February 2016.
The Met department yesterday forecast an 'above normal' monsoon this year, easing fears over farm and economic growth after two consecutive years of drought.
