Rating agency ICRA on Monday forecast India’s economy would grow 7.7% in the next financial year, buoyed by a pick-up in consumption following the implementation of the 7th Pay Commission and one-rank-one-pension recommendations as well as a “potential upturn in rural demand presuming a normal monsoon”.
Last month, the Economic Survey had predicted real GDP growth for 2016-17 to be in the
7-7.75% range. The country’s gross domestic product is expected to grow 7.6% in the current
financial year, according to the advance estimate by the central statistics organisation.
ICRA said despite the fresh project pipeline appearing robust, the start of work would trail announcements, given moderate capacity utilisation in some sectors.
