INSUBCONTINENT EXCLUSIVE:
Headline inflation is projected to rise to 5.2% in fiscal year 2018/19, IMF said.NEW YORK: India is projected to clock an economic growth of
7.5 per cent in the 2019-2020 fiscal year on strengthening of investment and robust private consumption, the IMF said in its latest
"broadly favourable." Growth is forecast to rise to 7.3 per cent in fiscal year 2018/19 and 7.5 per cent in 2019/20 on strengthening
2018/19, as demand conditions tighten, along with the recent depreciation of the rupee and higher oil prices, housing rent allowances and
sector reforms have been undertaken to address the twin balance sheet problems, as well as to revive bank credit and enhance the efficiency
of credit provision by accelerating the cleanup of bank and corporate balance sheets."Stability-oriented macro-economic policies and
November 2016 currency exchange initiative and the July 2017 Goods and Services Tax (GST) rollout, growth slowed to 6.7 per cent in fiscal
year 2017/18, but a recovery is underway led by an investment pickup
Headline inflation averaged 3.6 per cent in fiscal year 2017/18, a 17-year low, reflecting low food prices on a return to normal monsoon
rainfall, agriculture sector reforms, subdued domestic demand and currency appreciation.The report recommended that continued fiscal
consolidation is needed to lower elevated public debt levels, supported by simplifying and streamlining the GST structure
Further, while important steps have been taken to improve the recognition of Non-Performing Assets (NPAs) and recapitalise Public Sector
the government to take further steps to improve the PSBs' governance and operations, including by considering more aggressive
persistently-high household inflation expectations and large general government fiscal deficits and debt remain key macroeconomic
risks include a further increase in international oil prices, tighter global financial conditions, a retreat from cross-border integration
including spillover risks from a global trade conflict, and rising regional geopolitical tensions."Domestic risks pertain to tax revenue
shortfalls related to continued GST implementation issues and delays in addressing the twin balance sheet problems and other structural
downside from external factors, such as higher global oil prices and tighter global financial conditions, as well as domestic financial
macro-financial and structural reforms.(Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is
published from a syndicated feed.)
