India’s economic think-tank, National Council of Applied Economic Research (NCAER) has pegged India’s Gross Domestic Product (GDP) growth at 7.5 percent for the next fiscal year 2018-19 and added that in the current fiscal year (2017-18) Indian economy will grow at 6.7 percent. The figures are in line with the growth projections in current year’s Economic Survey, which said India is likely to clock 7-7.5 percent growth in 2018-19, up from 6.75 percent in the current fiscal.
NCAER has projected that in 2017-18, the real agriculture Gross Value Added (GVA) will grow at 1.0 percent, real industry GVA at 5.2 percent, and real services GVA at 8.0 percent. It also said the wholesale price index (WPI) inflation is forecasted at 6.4 percent for FY18. Besides, the growth rates in exports and imports, in dollar terms, are estimated at 12.8 percent and 24.8 percent, respectively. Moreover, current account balance and central fiscal deficit, as percentages of GDP, are projected at 2.0 percent and 3.5 percent, respectively for FY18.
The country’s economic think-tank said that in agriculture sector, the estimated output of major crops based on area and output equations, suggests that the output of kharif foodgrains is expected to be 139.8-141.2 million tonnes. The output of rabi foodgrains is also expected to remain close to last year’s output of 137 million tonnes. Further, on the Reserves Bank of India’s (RBI’s) monetary policy front, it said that based on the current and evolving macroeconomic situation of the economy, the RBI is expected to continue with the neutral liquidity stance in the coming months.
