New Delhi: India’s advance GDP growth estimate of 6.5% for this fiscal shows reform measures taken by the government is yielding results and growth will accelerate to over 7% in 2018-19, Chairman, Economic Advisory Council to the Prime Minister (EAC-PM), Bibek Debroy today said.
Economic growth in the third and fourth quarters of the current fiscal will be better than the first half of this financial year, he said.
“Advance GDP growth estimate of 6.5% shows that the reform measures undertaken by the government are yielding results because 6.5% for the full year means that Q3 and Q4 numbers will be far better than the first half of the year.
Q3 numbers should be higher than 6.5% and Q4 numbers will be close to 7%,” Debroy said in a statement.
Growth numbers will depend on the indirect tax collections, he said, adding several indicators have already shown signs of improvement, whether it is the PMI (Purchasing Managers’ Index), the high growth in the 8 core sector industries or data on car sales.
“The reform measures undertaken by the government will stimulate and pick up growth to more than 7% in 2018- 19,” Debroy said.
He also expressed confidence that private investments and exports would pick up soon.
According to Central Statistics Office (CSO) data released today the country’s economic growth is expected to slow down to a four year low of 6.5% in 2017-18 mainly due to the poor performance of agriculture and manufacturing sectors.
The GDP growth was 7.1% in 2016-17.