GDP growth for 2018-19 estimated to be 7.2 %
New Delhi, Jan 7: India's GDP growth for the financial year 2018-19 could be 7.2 percent which is 0.5 percent higher than fiscal 2017-18 when it stood at 6.7 percent.
In the first quarter of 2018-19 ending 30 June, the GDP grew at 8.2%, after 7.7% in the first three months of the year (i.e. Q4 of 2017-18). The GDP growth rate then slipped to 7.1% in the quarter ended 30 September.
Fitch Ratings has slashed India's GDP growth forecast to 7.2% for 2018-19, from 7.8% projected in September, citing higher financing cost and reduced credit availability.
India replaced France as the sixth-largest economy in the world in 2018, and is expected to make further gains on this front in the near future. Projections by the International Monetary Fund (IMF) suggest that India will continue to outperform China in economic growth until 2023.
India's Gross Domestic Product (GDP) growth has been higher than that of China in all years except 2017. The Indian economy has also been the fastest-growing major economy in the world during this period.
Experts, however, expect that moderating growth can force the government to spend more before 2019 Lok Sabha elections and that could lead to fiscal pressures.
Global factors such as sudden rise in crude oil prices (which are now easing), strengthening US dollar, slowing growth in the wake of US-China trade war and the US Federal Reserve hiking interest rate for the fourth time in a year took their toll on the Indian economy.