After a year of disruptions following the note-ban and the Goods and Services Tax (GST), the BMI Research, a Fitch group company, in its latest report has predicted that the Indian economy is likely to grow at 7.3% in the current financial year (FY19) from 6.6% rate reported in the previous year (FY18) on account of robust activity from the construction, manufacturing, and services sectors.
The report further said that the demonetisation and GST disruptions have almost faded and increasing public infrastructure spending to improve the nation's transport and rural infrastructure is expected to drive the growth of construction sector. Besides, BMI noted that solid economic activity in the US and the UAE, would also support a further expansion of the export manufacturing sector.
Besides, the rating agency praised the various reform measures being taken by the government, saying that continued economic liberalisation will likely provide tailwinds for India's large services sector. It further said that ongoing improvements to domestic business conditions and regulatory amendments to encourage higher foreign investor participation has led to rise in foreign direct investment (FDI) and this will also boost the country’s economic growth.