India Ratings and Research (Ind-Ra) projects India’s growth to 7.1%

The India Ratings and Research (Ind-Ra) has projected the India’s economic growth to improve to 7.1% for FY19 (2018-19) from 6.5% this year, buoyed by robust consumption demand and low commodity prices. In its outlook for 2018-19, the India Ratings, a subsidiary of Fitch Ratings, stated that there will be a gradual pick up in growth momentum owing to structural reforms like GST and Insolvency and Bankruptcy Code in place. The projection is a tad lower than 7.4% growth estimated by Asian Development Bank (ADB) and International Monetary Fund (IMF) for FY19. The agency has also said that it expects fiscal deficit in 2017–18 to come in at 3.5%, overshooting the budgeted estimate of 3.2%. The agency expects fiscal deficit in 2018–19 to be at 3.2%, higher than 3% stated in the medium-term fiscal policy statement.