India to grow at 7.9% this fiscal: Crisil

In the report titled India's Economy Is On The Mend, But Corporations Remain Wary, Crisil said the growth prospects "appear brighter", particularly among EMs.

By PTI | Updated: Apr 13, 2015, 09.36 PM IST

India to grow at 7.9% this fiscal: Crisil

NEW DELHI: The country's economic growth is expected to improve to 7.9 per cent in current fiscal year, even as it would take some more time for corporates to start investing, global rating agency Crisil said today.

"Crisil forecasts India's GDP growth to increase to 7.9 per cent in fiscal year 2016. Our projections are based on falling inflation, declining interest rates, and our expectation of a healthy monsoon this year," Crisil chief economist D K Joshi said.

However, agency's projection is lower than 8-8.5 per cent GDP growth forecast by the government for 2015-16.

Indian economy grew at 7.4 per cent in 2014-15 and 6.9 per cent in 2013-14.

Earlier in the day, foreign brokerage Morgan Stanley said that country's economy will grow at 7.9 per cent this fiscal and 8.4 per cent in FY 2016-17, on the back of policy reforms, spurt in domestic demand and lower inflation.

In the report titled India's Economy Is On The Mend, But Corporations Remain Wary, Crisil said the growth prospects "appear brighter", particularly among emerging markets.

The investment cycle is yet to show any signs of pickup and high non-performing assets in the banking sector foster risk aversion and mute monetary transmission and credit growth, it said.

"Therefore, it is important for India to stay the course of economic reform and renewed growth and to get the private corporate sector to join in the journey," it added.

Crisil said economy has been on a gradual uptrend since May last year but the country's corporate sector remains in a wait-and-see mode before committing to significant new investments.

The report noted that India is now the fastest growing economy among the BRICS nations (Brazil, Russia, India, China, and South Africa) and is no longer seen as part of the "fragile five" (Turkey, Indonesia, Brazil, and South Africa).

"India's strengthening economy now makes it better prepared to face the volatility in capital flows arising from interest rates hikes by the US Federal Reserve," it said.

Crisil said consumer and business sentiment has improved, the government's reforms agenda is strong, and global crude oil prices have fallen.

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10 salient features from new Foreign Trade Policy to push up India's exports

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Text: ET Bureau

With an aim to make India a significant partner in global trade by 2020, the government on Wednesday unveiled a new Foreign Trade Policy (FTP).

Talking about the new policy, which aims at boosting India's exports, Commerce Minister Nirmala Sitharaman said that PM Narendra Modi's pet projects, 'Make in India' and 'Digital India' will be integrated with the new Foreign Trade Policy.

The government is pitching India as a friendly destination for manufacturing and exporting goods, and the new policy is being seen as an important step towards realising that goal.

We take a look at some key features of the new Foreign Trade Policy:

Image: Minister of State for Commerce & Industry (Independent Charge), Nirmala Sitharaman with Revenue Secretary Shaktikanta Das and Commerce Secretary, Rajeev Kher releasing the “Foreign Trade Policy 2015-2020” in New Delhi on April 1, 2015.