Breaking News

You are here » Indian-Commodity  :  Top News  :  India's GDP growth to touch 7% in 2018: ASSOCHAM

26-Dec2017

India's GDP growth to touch 7% in 2018: ASSOCHAM

The industry chamber Associated Chambers of Commerce and Industry of India (ASSOCHAM) in its latest Year-Ahead Outlook has said that Indian economy is likely to touch 7% growth in 2018 with the government policies tilting towards the country's stress-ridden rural landscape in the penultimate year before the 2019 general elections. The report stated that against Gross Domestic Product (GDP) growth of 6.3% in the second quarter of 2017-18, the economic expansion may reach the crucial 7% mark by the end of September 2018 quarter, while inflation may range between 4-5.5% towards the second half of the next calendar year with the monsoon being a key imponderable.

ASSOCHAM has said that its projections for the 7% GDP growth are based upon the assumption of stability in the government policies, good Monsoon, pick-up in industrial activity and credit growth and stable foreign exchange rates. It added that the coming budget is expected to be heavily tilted towards the farmers while the industrial focus will be on the sectors which create jobs. Highlighting that the stress in the agriculture sector is traceable to lack of reforms in the rural economy, it said a realisation seems to be dawning that growth per se is not enough, the benefits must be seen in the form of higher employment and added that the year 2018 would see policies in this direction. Besides, it also said that the import-export policies for the agri products need to be revisited to help growers realise better prices.

The Year-Ahead Outlook pointed out that in the run-up to the state assembly elections in several politically important states like Karnataka, Rajasthan, Chhattisgarh and Madhya Pradesh, after the high stake Gujarat polls, the political economy is set to tilt towards the farm sector which has been witnessing some stress. The report stated that the external sector should continue to do well, with merchandise exports further gaining on the back of smart recovery being witnessed in the US and other important economies. Despite pressure on IT and ITeS exports, the services exports too should remain robust and the overall current account balance would remain well within the manageable limits with rupee continuing to remain steady. It added that the current account deficit may remain well below 2%. However, according to the industry chamber, the underlying bullish sentiment should continue to prevail in the Indian stock market in 2018, the returns on equity may not be as robust as in 2017.


Related News

View all news

Crude oil futures end higher on Monday

Crude oil futures ended higher for second straight session on Monday amid speculation about a likely drop in demand due to the impact of the US-China trade dispute on global economic growth. President......

Barley futures trade higher on good demand

Barley futures traded higher on NCDEX, as the participants increased their buying due to good demand from beer making industries amid low stocks position due to fall in supplies.The contract for November......

Nickel futures edge higher on improved demand

Nickel futures edged higher on MCX as participants built up fresh positions, tracking improved demand at the spot market. Further, a firming global trend also fuelled the uptrend.The contract for October......

Top News

View all news

PNB plans to sell non-core assets worth Rs 8,600 crore during FY19

Punjab National Bank (PNB) has recognized various assets, including its housing finance arm, for sale and hopes to realise Rs 8,600 crore from these non-core assets during the current fiscal. Meanwhile,......

SBI launches YONO six-day shopping festival

State Bank of India's (SBI) digital service platform YONO has launched a six-day shopping festival beginning October 16 in which customers using the app for shopping via online portals can avail discounts.......

Victory Paper to set up textile unit in Tamil Nadu

Victory Paper and Boards has received an approval for setting up of textile unit at Karur in the state of Tamil Nadu as a part of diversification of the operations of the company and purchase of 32.73......