Few days ahead of the release of fourth quarter gross domestic product (GDP) data, Economic Affairs Secretary Subhash Chandra Garg has expressed confidence that the Indian economy is likely to grow between 7.3% to 7.5% in Q4FY18 and about 6.7% during the fiscal year 2017-18.
Besides, soothing some worries about record high fuel prices, Garg said that the central government is all set to announce a long-term solution to the oil price crisis. However, he noted that it is not possible for the government to take a hurried decision on a plan to tackle the rising prices, as its import bill rises by between $1-$1.5 billion for ever $1 increase in the oil bill for the year.
Economic Affairs Secretary also assured that the Reserve Bank of India would look to stabilise the rupee and weed out volatility in the currency market, adding that the central bank was not working with any set target for the rupee. He also highlighted that if oil prices declined and the rupee appreciated, a moderation in bond yields could be expected and that a reversal of negative flows will lead to further moderation in bond yields.