New Delhi: Rating agency India Ratings and Research has projected the country’s economic growth rate to be 7.1 percent in the next financial year. It is estimated to be 6.5 percent in the current financial year. Fitch Ratings subsidiary India Ratings and Research said in their scenario for 2018-19, that due to structural reforms like Goods and Services Tax (GST) and Debt Refinement and Bankruptcy Code (IBC), the economic growth will gradually increase. According to the agency, the implementation of GST is expected to benefit the economy in the medium to long-term.
Economy expected to get benefitted
However, this can not be done in the context of note-offs. “India-rating hopes that the GDP growth rate will be 7.1 percent in 2018-19. It is less than the estimate of the growth rate of the Asian Development Bank (ADB) and the International Monetary Fund (IMF) in the next financial year. With the rise in crude oil in the global market, India Ratings expects retail and wholesale inflation to be 4.6 percent and 4.4 percent respectively in 2018-19.
Regarding fiscal deficit the agency said that it could be 3.5 percent in 2017-18, which is more than 3.2 percent of the budgetary estimate. At the same time, it has been estimated to be 3.2 percent in 2018-19, which is more than the target of 3 percent in the fiscal policy statement. According to the report, compared to the dollar due to global and domestic factors, the rupee could be average 66.06 in the next financial year.
