India's growth forecast News

In the Fifth Bi-Monthly Monetary Policy Review for 2017- 18, where it left the key policy rate unchanged, the central bank sounded confident of the economy achieving its previous growth estimate of 6.7 percent on a gross value-added basis, with risks evenly balanced.

RBI raised the inflation estimate to 4.3-4.7 percent, from the earlier projection of 4.2-4.6 percent, for the second half of the current financial year.

The latest IMF report lowered India's growth projection to 6.7 percent in 2017, 0.5 percentage points less than its previous two forecasts and attributed it to demonetisation and introduction of the GST.

Developing Asia is expected to grow by 5.9 and 5.8 percent in 2017 and 2018, respectively, the Manila-based lender said.

For the first time today, the government presented a second or a mid-year economic survey for the year 2017-18 highlighting the new factors that the economy faces since the last such exercise in February.

Noting that India is recovering from the temporary adverse effects of demonetisation, the World Bank has projected a strong 7.2 percent growth rate for India this year against 6.8 percent growth in 2016.

India's growth is expected to rebound to 7.2 percent in the 2017-18 fiscal and 7.7 percent in 2018-19 after disruptions caused by demonetisation, the IMF said on Monday, while recommending the removal of long-standing structural bottlenecks to enhance market efficiency.

 The IMF on Tuesday trimmed India's annual growth forecast by 0.4 percentage points to 7.2 percent for 2017, citing the impact of demonetisation.  

India's growth is projected to slow to 6.6 percent in 2016-17 fiscal due to the strains that have emerged in the economy as a result of "temporary disruptions" caused by demonetisation, the IMF said Wednesday.

The World Bank expects private investment to accelerate as firms and banks undertake the necessary measures and the effects of important structural reforms start being felt.

The bank also modified its projections for India's growth rate in 2017 and 2018 by a marginal down gradation of 0.2 percent to 7.7 percent growth in both the years.

Morgan Stanley Monday revised its growth forecast for India for 2016 to 7.5 percent from 7.9 percent previously and noted that the country's economy is expected to see tepid recovery largely owing to external factors.

The Organisation for Economic Cooperation and Development (OECD) has raised India's growth forecast compared to 7.3 percent expansion projected in November 2015.

Until October, the World Bank retained India's growth forecast at 7.5 percent for 2015-16 and expected it to be 7.8 percent in 2016-17 and 7.9 percent in 2017-18.

The Asian Development Bank (ADB) on Thursday kept its economic growth forecast for India unchanged at 7.4 percent for the current financial year and 7.8 percent for the next fiscal.

India does not need further fiscal stimulus to revive the economy, despite record low inflation and growth seen at the lower end of an 8.1-8.5 percent target this financial year, chief economic adviser Arvind Subramanian said on Wednesday.

Swiss brokerage UBS has revised downwards India's GDP growth projection for the current fiscal to 7.1 percent, from 7.5 percent earlier, on account of weaker external demand prospects.

Domestic ratings agency India Ratings on Friday marginally revised down its economic growth estimate for 2014-15 fiscal to 5.6 percent citing poor industrial performance, and warned that the government will slip on the fiscal deficit front.

Revising India's GDP upwards by 0.3 percent to 6.3 percent in 2015, Asian Development Bank (ADB) has said the economy shows a new promise of turnaround after the election brought a stable government in May.

Expectations of economic reform by Prime Minister Narendra Modi's new govt mean that the Manila-based lender has raised its 2015 growth forecast for India to 6.3 percent from 6.0 percent.