Union Railway Minister Piyush Goyal has expressed confidence that India’s Gross domestic product (GDP) growth will cross the 7.5 percent mark in the financial year 2018-19. He also believed that they will close this year upwards of 6.7 percent. Besides, he said “from the GDP growth of 5.3 or 6.3 per cent in the last two years of the UPA government, I think that the GDP that BJP-led NDA government has given to this nation is certainly a matter of great satisfaction for us.”
Goyal said that its first time he has heard that 5.9 percent fiscal deficit in 2011-12 was more fiscally prudent than 3.2 percent that the current government is targeting for the next year. He pointed out that this is new economics because it seems now that high fiscal deficit is fiscal prudence and low fiscal deficit is imprudence.
Recently, the RBI has lowered India’s economic growth projection for the current fiscal year 2017-18 to 6.6 percent from its previous projection of 6.7 percent in light of fresh production and corporate income data. But, it said that growth will accelerate to 7.2 percent in the fiscal year 2018-19, as the roll-out of goods and services tax (GST) stabilises and credit off-take improves. It also projected gross value added (GVA) growth in the range of 7.3-7.4 percent in H1 FY19 and 7.1-7.2 percent in H2 FY19 with risks evenly balanced.
