Lauding India’s economic growth which was recorded at 7.7 per cent in the fourth quarter of fiscal 2017-18 – the highest level in seven quarters – industry body FICCI on Friday said that the growth scenario is set to improve further going ahead, as the March quarter growth clearly shows that the Indian economy is on an uptrend. “The GDP growth data released yesterday presents an optimistic picture of the economy, reflected in y-o-y growth for Q4, especially for construction and manufacturing sectors,” Rashesh Shah, President of the Federation of Indian Chambers of Commerce and Industry (FICCI) said in a statement.
According to Shah, the GDP numbers released a day ago also provide an indication on the likely trajectory of the economy in the current year. “From where we stand today, we expect growth to be around 7.5 per cent in the current fiscal but will have to be watchful about the movement in the oil prices in the global market as well as the pace at which the health of the domestic banking sector improves,” Shah warned.
The industry body said that higher growth in both private and government expenditure, as well as significant rise in gross fixed capital formation in the fourth quarter, showed that demand and investments have picked up the pace. “These corroborate with FICCI’s surveys that reveal an improving outlook on investments. We hope that the Government will continue investing in infrastructure to accelerate the pace of growth even further,” Shah added.
The FICCI President also asserted that structural reforms undertaken over the last few years are beginning to show results and expressed hope that the government will continue the process of reforms, especially in the areas of factor market to make the industry more competitive and capable of contributing significantly to national output and job creation.