The Indian economy is likely to grow by 7.4% in the next fiscal, according t India Ratings and Research.
GDP growth estimate for 2016-2017 has been revised from 6.8 to 7.9 percent, lower than the CSO advanced estimate of 7.1%.
Gross value added of three production sectors, namely agriculture, industry and services would grow at 3%, 6.1% and 9.1% Y-O-Y in this fiscal.
The current account deficit will come at 1% of the GDP in 2017-2018 as against 0.9 percent in 2016-2017.
This will help the rupee trade at an average 69.18/USD in FY18.
India is likely to face continued headwinds on the exports front due to the play out of Brexit and the anti-globalisation stance of US President Donald Trump and imports are unlikely to pick up so long as the domestic investment cycle does not revive.
As against the popular perception, Ind-Ra said the main setback to investment growth came from the negative 2.2 percent growth in the gross fixed capital formation (GFCF) of household sector.
Ind-Ra expects GFCF to grow at 4.9 percent in 2017-18.
India's economic growth forecast of 7.4 percent by Ind-Ra in 2017-18 is on the upper end of the 6.75 to 7.5 percent band estimated in the Economic Survey.
Ind-Ra: Know More - India Ratings & Research (India Ratings) is a rating agency committed to providing the India's credit markets with accurate, timely and prospective credit opinions.
- India Ratings has grown rapidly during the past decade gaining significant market presence in India's fixed income market.
- India Ratings is a wholly owned subsidiary of the Fitch Group.
- India Ratings currently maintains coverage of corporate issuers, financial institutions.
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