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14-May2019

Indian economy to grow at 7% range in current fiscal: Subramanian

Chief Economic Advisor (CEA) Krishnamurthy V. Subramanian has said  that the Indian economy would grow at 7% range in the current financial year (FY20) powered by the effects of the strong structural reforms such as bankruptcy laws, Goods and Services Tax (GST), crackdown on shell companies and the fiscal prudence undertaken in the last five years. He also stated that India would be able to maintain the fastest growing economy tag ahead of China. India still has significant potential and scope to grow strongly given the reforms that have been undertaken.

Talking about current economic slowdown, he said the effect of investments would manifest on economic growth with a lag and in an election year, there is wait-and- watch mode by corporates before undertaking fresh fund infusion into businesses. Moreover, he also said as an effect of the government's recent measures, the current economic slowdown will gradually be replaced by higher investment and consumption going ahead.

Besides, the Indian economy grew at 6.6% in the December quarter, the slowest in five quarters, which prompted the government's Central Statistics Office (CSO) to trim its 2018-19 forecast to 7% from 7.2%. The Asian Development Bank (ADB), the Reserve Bank of India (RBI) and the International Monetary Fund (IMF) have cut India's Gross Domestic Product (GDP) growth forecast to 7.3% for FY20.


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