Tuesday 2 February 2016

RBI Forecast GDP growth of 7.6% for FY17

For 2016-17, growth is expected to strengthen gradually, notwithstanding significant headwinds.


RBI Governor Raghuram Rajan Forecast GDP growth of 7.6% for FY17 and 7.4% with downward bias for FY16.

For 2016-17, growth is expected to strengthen gradually, notwithstanding significant headwinds. Expectations of a normal monsoon after two consecutive years of rainfall deficiency, the large positive terms of trade gain, improving real incomes of households and lower input costs of firms should contribute to strengthening the growth momentum. 
Yet, still weak domestic private investment demand in a phase of balance sheet adjustments, re-emergence of concerns relating to stalled projects, excess capacity in industry, sluggish external demand conditions dampening export growth could act as headwinds.

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