India’s GDP Growth May Touch 7.5% In 2018-19 Fiscal Year
Kalinga TV News Network:
New Delhi: As per the latest report of global financial service major Morgan Stanley, the momentum of India’s economic growth is expected to accelerate between the April-June period and the country’s GDP growth rate may touch 7.5 per cent in the current financial year.
The report has revealed that the growth rate will remain steady in view of increased consumption and export levels. Interestingly, between January-March 2018, India’s GDP grew at the fastest pace in seven quarters at 7.7 per cent; all thanks to substantial farm outputs as well as the stupendous performance of the manufacturing and service sectors.
According to Morgan Stanley, the macro-stability indicators of the economy such as inflation and the current account deficit are likely to remain in check this financial year. This would accelerate the GDP growth, which might touch 7.5 per cent as compared to 6.7 per cent in 2017-18. The report forecasts Consumer Price Index (CPI) inflation to remain slightly above the inflation target of 4 per cent and the current account deficit below 2.5 per cent of GDP.
However, the report has also stated that risks to the estimated GDP growth figure may arise due to slower rates of global growth or a sudden rise in trade tensions impacting the external demand. Furthermore, steep rise in prices of crude oil, persistent US dollar strength, delay in pick-up of private investment and a weak monsoon may impact the country’s growth momentum this financial year.