Indian GDP growth forecast accelerates to 7.5 per cent in 2017 

The Indian economy will grow at 7.5 per cent in the current fiscal, as the growth rate will accelerate to 8 per cent in four years according to US rating agency Moody’s. They said “We expect marginally faster growth in India.

According to our forecast economy will grow 7.5 per cent in the fiscal year 2017 (2017-18) and 7.7 per cent in the fiscal year 2018 (2018-19). Overall we continue to believe that economic growth will gradually accelerate to around 8 per cent over the next three to four years. However, the negative impact of the November 8 denomination of high-value currency on the economy as limited in size and duration.”

They further said“The BJP government has pushed through major reforms like further liberalising foreign direct investment (FDI) rules in a number of key sectors, including the Direct Benefit Transfer scheme for food, fertiliser and kerosene subsidies, the goods and services tax and national bankruptcy code. These will help reduce inefficiencies and improve trend growth over the long run.”

There was, however, caution about the persistent weakness of banking sector from a high proportion of delinquent loans on bank balance sheets will weigh on growth if not resolved by constraining credit for the investment-related activity. Private sector investment remained weak despite progress on reforms.