According to latest FICCI Economic Outlook Survey, India’s economy is likely to expand 7.8 per cent during the current financial year.
According to Survey, there has been a “marginal improvement” in growth estimate for 2016-17 as against the previous round and this comes at the back of better performance of the agriculture and industry sector.
The monsoon season has been good this year which is expected to support agricultural production.
Reserve Bank has also said the near-term growth outlook for India seems brighter than last fiscal and the economy is likely to expand at 7.6 per cent in 2016-17.
The survey was conducted during July-August among leading economists belonging to the industry, banking and financial services sector.
However, the survey results indicate a marginal decline in the service sector growth this year vis- -vis the estimated growth in the previous survey round.
As per the survey, the median growth forecast for IIP has been put at 3.5 per cent for the year 2016-17, with a minimum and maximum range of 2 per cent and 4.3 per cent, respectively.
The median forecast for Wholesale Price Index based inflation rate for 2016-17 has been put at 2.4 per cent while for Consumer Price Index it is 5.2 per cent.
Industry is projected to grow by 7.3 per cent in 2016-17, 0.2 percent points higher than the projection as per our previous survey round.