Reserve Bank of India Governor Urjit Patel on Friday said that India’s market is stable despite geopolitical uncertainties and the current account deficits are also within the sustainable limit, TV reports said. He further said that country’s recent economic growth may have disappointed some but government has purchased the path of fiscal consolidation. He also said that the ratio of public debt to GDP is also gradually declining.
Meanwhile, an RBI data showed that India’s services exports grew by 8% to $14.15 billion in October. They amounted to $13.11 billion in October last year. The imports of services increased as well, by 13.3%, entailing an outgo of $8.7 billion in October, as per the RBI data on India’s International Trade in Services.
Import payments were at $7.68 billion in October 2016. Cumulatively, the services exports during the April-October period of the 2017-18 fiscal reached $94.48 billion. The imports stood at $55.44 billion. India is one of the major economies contributing to the world services export industry. The services sector contributes to about 55% of India’s gross domestic product (GDP). The data published by the Reserve Bank of India is provisional and undergoes revision when the Balance of Payments (BoP) data is released on a quarterly basis.
Recently, rating agency Fitch on Monday has cut India’s GDP growth forecast for the current fiscal to 6.7% from 6.9% and fiscal year 2018-2019 to 7.3% from 7.4%, saying the that the economic growth has “repeatedly disappointed in recent quarters”. Fitch has cut India’s GDP growth forecast by 20 basis points to 6.7% for FY18 and 10 basis points to 7.3%, the economic growth in the second quarter showed signs of recovery at 6.3% from a three-year low of 5.7% in the first quarter of the current fiscal year after the implementation of the ambitious direct tax regime of the GST. According to the rating agency, the 6.3% growth rate was “weaker than expected.”