While cautioning that the economy management is likely to be challenging in FY19, the latest Economic Survey also points out that with world growth likely to witness moderate improvement in 2018, GST to get stabilised, investment showing signs of recovery economy should record higher growth. The Survey expects Indian economy to grow at 6.5 to 6.75 percent in FY18 and at 7-7.5 percent in FY19.
With global growth to inch up from 3.6 percent in 2017 to 3.7 percent in 2018, the Survey expects India’s exports, which tuned positive during 2016-17, to move up further during FY19.
The Survey expects the Manufacturing sector to grow at 8 percent this fiscal and to get further fillip with the revival in consumption demand in FY19.
With the revival in investment activities, and the recent pick up in the growth of fixed investment, the Survey expects projects investment to gain momentum in FY19.
As far as sustaining the growth momentum the Survey has clear cut recommendation like
stabilizing the GST, completing the Twin-Balance Sheet cleaning actions, privatizing Air India, and staving off threats to macro-economic stability.
– Shashikant Hegde, CEO, Projects Today