India's 2018-19 economic growth pegged at 7.5%

The wholesale price index inflation is projected at 6.4 per cent for 2017–18.

The Indian economy is projected to grow at 6.7 per cent in the current financial year and 7.5 per cent in 2018-19, economic think-tank NCAER said on Monday.

The figures are in line with the growth projections in this year's Economic Survey, which said India is likely to clock 7-7.5 per cent growth in 2018-19, up from 6.75 per cent in the current fiscal.

“NCAER forecasts a growth of 6.7 per cent for the Gross Domestic Product (GDP) at market prices... For 2018–19, NCAER forecasts a growth of 7.5 per cent for GDP at market prices," it said.

In a statement, the National Council of Applied Economic Research (NCAER) also said that in 2017–18, the real agriculture Gross Value Added (GVA) is envisaged to grow at 1.0 per cent, real industry GVA at 5.2 per cent, and real services GVA at 8.0 per cent.

It further said the wholesale price index (WPI) inflation is projected at 6.4 per cent for 2017–18.

The growth rates in exports and imports, in dollar terms, are estimated at 12.8 per cent and 24.8 per cent, respectively.

The statement said current account balance and central fiscal deficit, as percentages of GDP, are projected at –2.0 per cent and 3.5 per cent, respectively, for 2017–18.

The think-tank also said that in the 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.

Noting that the RBI maintained status quo at its sixth bi-monthly policy meeting in February 2018, the statement said, "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."

Photograph: Rupak De Chowdhuri/Reuters