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Economy set to grow 7.4% in FY18: Ficci

Industry and services sectors to grow by 6.9%, 8.4%, respectively
Last Updated 15 May 2017, 17:28 IST

An industry survey has said India’s economy is set to grow by a robust 7.4% in 2017-18, backed by the agriculture sector, which is estimated to grow 3.5%. Industry and services sector are also set to contribute to growth.

The industry and services sector are expected to grow by 6.9% and 8.4%, respectively in 2017-18, the latest round of Ficci’s Economic Outlook Survey, conducted during March and April, said. The survey was conducted amongst economists belonging to the industry, banking and financial services sector and the participants felt that with the process of re-monetisation almost complete, consumption activity has witnessed an uptick and will further build up going ahead.

Also, Indian Meteorological Department’s latest forecast of monsoon arriving on time and being sufficient provides some reprieve amidst earlier reports of El Nino having a dampening effect this year, it said.

Moreover, the outlook of economists with regard to prices remains benign and is in line with RBI’s projection put out in the monetary policy statement announced in April this year. According to the survey, Consumer Price Index has a median forecast of 4.8% for 2017-18 with a minimum and maximum level of 4.0% and 5.3%, respectively. RBI in its latest policy statement estimated CPI inflation to average 4.5% in the first half of the year and 5% in the second half.

The economists were also asked to share their assessment of the concept of Universal Basic Income and suggest ways to ensure its success. The idea of Universal Basic Income (UBI) for guaranteeing minimum basic support to the Indian citizens has been in discussion for some time now and found a special mention in the Economic Survey 2016-17.

A majority of the economists participating in the survey were supportive of the idea of Universal Basic Income. The respondents felt that UBI can be an efficient framework which would help reduce poverty and transfer the choice/decision to spend on the individual.

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(Published 15 May 2017, 17:28 IST)

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