Going ahead of the government and Reserve Bank of India's (RBI) estimates about the country's economic growth, the PHD Chamber of Commerce and Industry, which acts as a catalyst in the promotion of industry, trade and entrepreneurship in the country, covering geographical span of 12 states, has said that India's economy is likely to clock nearly 8 percent growth in the current fiscal on the back of robust private consumption, which has benefited from lower energy prices and higher real incomes. It has said that with the further revival of sentiment and pick-up in industrial activity, a recovery of private investment is expected to strengthen growth in the coming times
The chamber also estimated that India's share in world GDP has doubled from 1.43 percent in 2000 to 2.86 percent in 2015 and said that India's GDP stood at $ 477 billion in 2000 and increased to $ 2,091 billion in the year 2015, showing more than four-fold increase over a period of 15 years. Chamber’s president Mahesh Gupta added that the BRICS economies (Brazil, Russia, India, China and South Africa) also contributed a significant share in the world GDP which increased from 8.27 percent in 2000 to 22.53 percent in 2015.
Gupta also said that given weak private investment in the face of low capacity utilisation, a reduction in the policy rate by 25 bps (basis points) will help strengthen activity and aid the government's initiatives. RBI in its first monetary earlier this month cut the key interest rate by 25 basis points, but retained its GDP growth projection for 2016-17 at 7.6 percent.
