New Delhi: The Central Statistics Office (CSO) on Monday predicted the Indian economy to grow at 7.2 per cent in 2018-19 against 6.7 per cent in the previous fiscal mainly due to improvement in the performance of agriculture and manufacturing sectors
“Real GDP or GDP at Constant Prices (2011-12) in the year 2018-19 is likely to attain a level of Rs 139.52 lakh crore, as against the ‘Provisional Estimate of GDP for the year 2017-18’ of Rs 130.11 lakh crore, released on 31st May 2018,” the Ministry of Statistics and Programme Implementation said in “First Advance Estimates of National Income, 2018-19”.
The development comes as a big boost for the Narendra Modi led-central government ahead of upcoming Lok Sabha elections 2019, especially with the Congress-led opposition cornering the government over the alleged economic crisis and the Centre’s economic reforms. including demonetisation and GST.
The prediction by the government body comes at a time when most private economists have lowered country’s GDP forecast to around 7 per cent for the current fiscal, compared with the RBI’s earlier estimate of 7.4 per cent, citing weakening consumption and slowdown in credit offtake.
Earlier in December, the Reserve Bank of India (RBI) pegged India’s GDP growth rate for the financial year 2018-19 at 7.4 per cent and 7.2 per cent in H2.
In December 2018, the World Development Indicators database showed that the Indian economy in the world has increased from 2.6 per cent in 2014 to 3.2 per cent in 2017.
According to IMF October 2018 database, the Indian economy is projected to be the fastest growing major economy in 2018-19 and 2019-20.