Laborers work at a construction site at the outskirts of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Economic Growth Likely To Hit 7.5% In 2018-19, NITI Aayog’s Rajiv Kumar Says

Niti Aayog Vice Chairman Rajiv Kumar expects India's economy to grow at least 7.5 percent in the current financial year, on the back of improving investment cycle and capacity utilisation.

“The economic environment is extremely positive and optimistic. The investment cycle has certainly turned upwards,” Kumar told news agency PTI. “The capacity utilisation has risen to 74 percent. The inflation is still well under the target. Foreign Direct Investment is increasing and I expect rate of growth to be at least 7.5 percent in 2018-19.”

The government should now concentrate on consolidating the reform initiatives undertaken in the last 47 months, he added.

India’s economy picked up pace in the October-December period as it continued to recover from the twin disruptions of demonetisation and a nationwide goods and services tax. The gross value added growth stood at 6.7 percent in the third quarter of 2017-18 compared with a revised 6.9 percent in the same period last year and a revised 6.2 percent in the previous quarter.

The economy is expected to grow at 6.6 percent in the financial year ended March 2018, Kumar said. On reform measures the Modi government should take in the next one year, he said, “The government has taken so many reforms and so many initiatives that I think it is now time to to consolidate rather than plan for new initiatives.”

Also read: India's Economy Is Growing Again, Just Not Fast Enough