<p class="title">Indian economy is projected to grow at 7.2 % in 2018-19, India Ratings and Research (Ind-Ra) on Thursday said.</p>.<p class="bodytext">The rating agency earlier forecasted India's economic growth at 7.4 % in current fiscal.</p>.<p class="bodytext">The key reason for this, Ind-Ra said, is the upward revision in the estimation of inflation for 2018-19 due to increasing crude oil prices and the government's decision to fix the minimum support prices of all kharif crops at 1.5 times the production cost (A2+FL).</p>.<p class="bodytext">The rating agency in a report titled 'Mid-year FY19 Outlook' said it believes the other headwinds lurking on the horizon are rising trade protectionism, depreciating rupee and, no visible signs of the abatement of the non-performing assets of the banking sector.</p>.<p class="bodytext">"Furthermore, it is taking a tad longer than expected to resolve cases under the Insolvency and Bankruptcy Code.</p>.<p class="bodytext">"This simply means 'bringing the stuck capital back into the production process to enhance the productivity of capital' will be a long drawn-out affair," Ind-Ra said.</p>.<p class="bodytext">Ind-Ra said it expects private final consumption expenditure to grow 7.6 % in 2018-19 compared to 6.6 % in 2017-18.</p>.<p class="bodytext">The rating agency pointed out that government capex alone will be insufficient to revive the capex cycle, as its share in the total capex of the economy was only 11.1 % during 2012-17.</p>.<p class="bodytext">"On the other hand, the share of private corporations was 40.9 %. As private corporations in combination with the household sector command 77.5 % of the total investment in the economy, their capex revival is a must for a broad-based recovery in the investment cycle," it observed.</p>.<p class="bodytext">Noting that India will face continued headwinds on the exports front, the rating agency said although it expects the annual value of exports to touch $ 345 billion in the current fiscal, crossing the peak of $ 318 billion attained in 2013-14.</p>.<p class="bodytext">Ind-Ra said it expects average retail and wholesale inflation in 2018-19 to come in at 4.6 % and 4.1 %, respectively, as against 4.3 % and 3.4 % forecasted earlier.</p>.<p class="bodytext">"Ind-Ra expects CAD to widen to $ 71.1 billion in 2018-19 from $ 48.7 billion in 2017-18," it said.</p>.<p class="bodytext">On rupee, the rating agency said that in 2018, rupee has already depreciated 7.7 % till July in response to elevated global turbulence, worsening of current account, rising inflation and concerns related to fiscal deficit.</p>.<p class="bodytext">Ind-Ra said it has maintained a stable outlook on the finances of Indian states for 2018-19.</p>.<p class="bodytext">"Ind-Ra expects the aggregate fiscal deficit of the states to moderate to 2.8 % of GDP," Ind-Ra said.</p>
<p class="title">Indian economy is projected to grow at 7.2 % in 2018-19, India Ratings and Research (Ind-Ra) on Thursday said.</p>.<p class="bodytext">The rating agency earlier forecasted India's economic growth at 7.4 % in current fiscal.</p>.<p class="bodytext">The key reason for this, Ind-Ra said, is the upward revision in the estimation of inflation for 2018-19 due to increasing crude oil prices and the government's decision to fix the minimum support prices of all kharif crops at 1.5 times the production cost (A2+FL).</p>.<p class="bodytext">The rating agency in a report titled 'Mid-year FY19 Outlook' said it believes the other headwinds lurking on the horizon are rising trade protectionism, depreciating rupee and, no visible signs of the abatement of the non-performing assets of the banking sector.</p>.<p class="bodytext">"Furthermore, it is taking a tad longer than expected to resolve cases under the Insolvency and Bankruptcy Code.</p>.<p class="bodytext">"This simply means 'bringing the stuck capital back into the production process to enhance the productivity of capital' will be a long drawn-out affair," Ind-Ra said.</p>.<p class="bodytext">Ind-Ra said it expects private final consumption expenditure to grow 7.6 % in 2018-19 compared to 6.6 % in 2017-18.</p>.<p class="bodytext">The rating agency pointed out that government capex alone will be insufficient to revive the capex cycle, as its share in the total capex of the economy was only 11.1 % during 2012-17.</p>.<p class="bodytext">"On the other hand, the share of private corporations was 40.9 %. As private corporations in combination with the household sector command 77.5 % of the total investment in the economy, their capex revival is a must for a broad-based recovery in the investment cycle," it observed.</p>.<p class="bodytext">Noting that India will face continued headwinds on the exports front, the rating agency said although it expects the annual value of exports to touch $ 345 billion in the current fiscal, crossing the peak of $ 318 billion attained in 2013-14.</p>.<p class="bodytext">Ind-Ra said it expects average retail and wholesale inflation in 2018-19 to come in at 4.6 % and 4.1 %, respectively, as against 4.3 % and 3.4 % forecasted earlier.</p>.<p class="bodytext">"Ind-Ra expects CAD to widen to $ 71.1 billion in 2018-19 from $ 48.7 billion in 2017-18," it said.</p>.<p class="bodytext">On rupee, the rating agency said that in 2018, rupee has already depreciated 7.7 % till July in response to elevated global turbulence, worsening of current account, rising inflation and concerns related to fiscal deficit.</p>.<p class="bodytext">Ind-Ra said it has maintained a stable outlook on the finances of Indian states for 2018-19.</p>.<p class="bodytext">"Ind-Ra expects the aggregate fiscal deficit of the states to moderate to 2.8 % of GDP," Ind-Ra said.</p>