India growth to pick up in 2018-19: Urjit

The Indian economy gave a resilient performance in 2017-18, and the country’s growth is expected to accelerate next fiscal, RBI Governor Urjit Patel has said.

Although the real GDP growth was moderated to 6.6%, from 7.1% a year ago, there was a strong rebound in the second half of the year on the back of a turnaround in investment demand, Patel said.

Patel was addressing the International Monetary Finance Committee here on day.

The Indian economy gave a resilient performance in 2017-18, Patel said. This was supported by an acceleration in manufacturing, rising sales growth, a pick-up in capacity utilisation, strong activity in the services sector and a record agricultural harvest.

“Several factors are expected to help accelerate the pace of growth in 2018-19. There are now clearer signs that the revival in investment activity will be sustained,” he said.

Global demand has been improving, which should encourage exports and boost fresh investments, Patel said, adding that on the whole, real GDP growth was expected to expand at 7.4% in 2018-19, with risks evenly balanced.

In his address, Patel said that since November 2016, headline consumer price inflation had generally remained below the medium-term target of 4%.

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