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NCAER revises FY18 GDP growth upward to 7.6% from 7.3%

22 Jun 2017 Evaluate

With forecast of normal monsoon, economic think-tank, the National Council of Applied Economic Research (NCAER) in its latest ‘quarterly review of the economy’ has revised upward the gross domestic product (GDP) growth for the current financial year to 7.6 per cent from 7.3 per cent projected earlier. NCAER also scaled up the country's gross value added (GVA) growth from 7 per cent to 7.3 per cent for the year.

The think tank further projected wholesale price index-based (WPI) inflation at 6.7 per cent for the current fiscal year and kept optimistic prospects for the agricultural sector in 2017-18, owing to normal monsoon forecast. It added that the level of water storage in the country's main reservoirs in 2017-18 is better compared to last year, in fact better than the average storage over the last ten years. NCAER though stated that while there is ample liquidity in the system and bank lending rates have come down post- demonetisation, bank credit is yet to pick up, as it is being weighed down largely by an excess amount of gross non- performing assets on balance sheets.

India’s GDP stood at 7.1 per cent for the fiscal year 2016-17, as compared to 8 per cent in the previous year, while for the Jan-Mar quarter it stood at 6.1 per cent against 7 per cent in the previous quarter of FY17. Gross value added (GVA) for FY17 stood at 6.6 per cent over 7.9 per cent in the previous year, while for the fourth quarter it stood at 5.6 per cent against 6.7 per cent in the previous quarter.


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