GDP set to grow 7.4% this year: PM



Source: THE FREE PRESS JOURNAL

India’s GDP growth is poised to jump to 7.4 per cent in 2018 from 6.2 per cent in 2017 on the back of strong macroeconomic fundamentals, Prime Minister Narendra Modi said on Tuesday. “India has emerged as a bright spot in the global economy that is driving global growth as well,” Modi said while addressing the third annual meeting of the Asian Infrastructure Investment Bank in Mumbai.

From 7.9 per cent in 2016, India’s economic growth slumped to 6.2 per cent in 2017 due to demonetisation of high-value currency notes on Nov 8, 2016 and implementation of goods and services tax from Jul 1, 2017.

“Our macroeconomic fundamentals are strong with stable prices, a robust external sector, and a fiscal situation firmly in control. Despite rising oil prices, inflation is within the mandated range,” he said.  “The government is firmly committed to the path of fiscal consolidation. The government debt as percentage of GDP is consistently declining. India has achieved a rating upgrade after a long wait.”

The prime minister also asked AIIB to increase lending tenfold within two years to help the region meet its investment needs faster. To date the AIIB’s loan portfolio totals $4 billion, but by 2020 the figure should rise to $40 billion, and by 2025 it should go up to $100 billion, Modi said.

Source: THE FREE PRESS JOURNAL