GDP forecast low­ered to 7%-7.5% for 2015-16

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - HT Cor­re­spon­dent let­ters@hin­dus­tan­times.com

NEW DELHI: The In­dian econ­omy will likely grow at 7%-7.5% in 201516, slower than 8.1%-8.5% es­ti­mated in Fe­bru­ary, hit by two years of back-to-back droughts, plung­ing ex­ports and weak pri­vate sec­tor in­vest­ment, the gov­ern­ment said on Fri­day.

De­spite the growth down­grade, In­dia which grew at 7.2% in April to Septem­ber will re­main the world’s fastest grow­ing ma­jor econ­omy out­pac­ing neigh­bour­ing ti­tan China that is set to grow at about 7%.

“We es­ti­mate that real (in­fla­tion-ad­justed) GDP for the year as a whole will lie in the 7%-7.5% range,” the fi­nance min­istry said in the Mid-year Eco­nomic Anal­y­sis tabled in Par­lia­ment on Fri­day, but cau­tioned that there were “mixed sig­nals” com­ing in from var­i­ous mark­ers.

The econ­omy has made con­sid­er­able progress but chal­lenges re­main, the anal­y­sis said.

“The real econ­omy is show­ing signs of re­cov­ery. At the same time, the im­prove­ment in growth has been un­even, pow­ered only by pri­vate consumption and pub­lic in­vest­ment,” it said.

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