GDP Growth For 2018–2019 Could Be In Range Of 7 To 7.5%
As per the India Economic Survey 2018, India’s economy should accelerate between 7% and 7.5% in the coming financial year, i.e. from April 1, 2018 with private ventures and exports all geared up to hit back.
For the current financial year till March 31, 2018, the GDP is 6.75% as seen by the economic survey. Some key alterations assumed over the previous year will facilitate an increase in GDP of 7 to 7.5 % in 2018–2019. It will restore India as the fastest-growing main economy in the world.
The Nifty and Sensex mounting to record highs indicates the strong stock market this afternoon. The Sensex rose to 350 points and Nifty above 11,150.
Arvind Subramanian, Chief Finance Advisor who made the survey tweeted that after momentary decoupling, the growth is stimulated. He further added that the economic activities are growing stronger.
With the enforcement of GST, implementing bank re-capitalization schemes for public sector financial institutions, resolving long-decomposing bad loans under the Insolvency and Bankruptcy Code and more liberalization of FDI policy will help to raise GDP, which is expected to speed up from the second half of the present financial year.
The IMF forecast the economy of India to rise at 7.4 % in the year 2018 and 7.8% in 2019. It has, however, flagged threat from increasing oil prices that could interrupt GDP growth.
It also opined that there are concerns about rising protectionist propensities in a few countries, but how the condition unfurls is to be seen.
The survey also presents a list of agendas concerning the policies for the financial year 2018–2019. This comprises support to rural sector and agricultural development, stabilizing Goods and Service Tax, carrying out and recapitalization of private banks and privatization of the flag carrier airline, Air India.
The budget will be presented on February 1, 2018 by Mr. Arun Jaitley.