NEW DELHI: Recovering from the damage caused by the demonetisation and the goods and services tax (GST), India’s economy is forecast to grow at its fastest pace in three years in FY19. Ahead of the general elections, this progress will mark the end of the government’s five-year term on a positive note.
The government stated that India will retain its ranking as the world’s fastest growing economy. From last year’s 6.7% Gross domestic product (GDP) is forecast to grow 7.2%. According to the data released on Monday, Gross value added (GVA) growth is seen at 7% against 6.5% last year.
The department of economic affairs secretary Subhash Chandra Garg stated that “Very healthy advance GDP growth numbers for 2018-19, India remains fastest-growing major economy globally.”
The International Monetary Fund (IMF) has forecast 7.3% growth in the current fiscal and 7.4% in the year after. The growth forecast is slightly lower than 7.4% estimated by the Reserve Bank of India (RBI).
According to the report published in the Economic Times, Chief economist DK Joshi said, “The growth number seems realistic and may not need to be revised as it fairly reflects the present situation.”
The slowing global economy has also contributed marginally. The decline in crude prices, the strengthening rupee and low inflation have brightened the outlook in the new year.