Govt sees 7% growth |
India expects growth of around 7 percent in the first half of the next fiscal year, two officials said, painting a rosier picture for the economy than many economists after Prime Minister Narendra Modi`s shock move to abolish large banknotes. Several private economists have said the move could drag down growth in the next fiscal year to 6.5 percent to 7 percent, as small businesses fired workers, consumer demand fell and farmers` winter sowing efforts were hit. The government officials, involved in budget discussions for the 2017-18 fiscal year, cknowledged that growth in Asia`s third-largest economy would still be less than the 7.75 percent initially projected for the current fiscal year. It could even fall as low as 4 percent in this year`s January-March quarter, they said.Still, the officials said the finance ministry`s internal projections leave sufficient room to allocate funds for investments and infrastructure spending, without derailing India`s fiscal deficit target. India plans to cut its fiscal deficit to 3 percent of GDP in the fiscal year to March 2018, versus this year`s target of 3.5 percent. Modi can fund increases of 10 percent to 15 percent in some ministries` budgets and focus on job creation in areas such as farming, construction and small businesses, the officials said.
|
|
|
|