Economic Survey Boosts India's Resurrection Story, Predicts 7-7.5% For 2018-19: Here's What Global Credit Rating Agencies Had Projected

The recent report released by the International Monetary Fund says India will emerge as the "fastest growing economy" in 2018.

Adverse effect of demonetisation and GST ceases to exist, said CEA Arvind Subramanian (Image: PTI)

New Delhi, Jan 29: In a major boost to India's growth resurrection story -- which faced a major halt with the demonetisation drive and roll-out of GST -- the Economic Survey 2017-2018, tabled by Chief Economic Advisor Arvind Subramanian, predicts the Gross Domestic Product (GDP) to grow between 7-7.5 per cent in the coming fiscal year. The survey's projection comes in the aftermath of a spree of predictions made by global credit rating agencies, which claim the Indian GDP to grow between 7-8 per cent in 2018-19.

Here are the recent forecasts for India's GDP growth by major global financial institutions:

The most recent shot in the arm for the Narendra Modi government came from the International Monetary Fund (IMF) in the past week, a day before the Indian Prime Minister addressed the plenary session of the World Economic Forum in Davos.

The IMF predicted the Indian economy to grow at 7.4 per cent in the coming fiscal, whereas, China was projected to register a growth of 6.8 per cent. If the prediction turns out to be accurate, India would become the world's fastest growing economy.

As per the ‘World Economic Situation and Prospects 2018’ report prepared by the United Nations, the Indian economy is projected to grow at an impressive rate of 7.2 per cent.

Goldman Sachs, the globally renowned investment bank, gave India the most impressive edge in its report for 2018-19. The leading financial services company said the reforms undertaken by the Modi government would let India register a growth of 8 per cent in the coming fiscal.

Among others, Morgan Stanley predicted 7.5 per cent, Moody's 7.6, HSBC 7, Nomura 7.5 and the Bank of America Merrill Lynch projected 7.2 per cent.

For the ending fiscal year, India has recorded a growth of 6.7 per cent, merely 0.1 per cent below China's GDP growth rate.

(The above story first appeared on LatestLY on Jan 29, 2018 04:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).

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