India’s GDP growth pegged at 7-7.5% in FY19, says survey

India painted a rosy picture of the economy by scaling up the GDP growth projection for this fiscal to 6.75% and the growth forecast for the next year to 7-7.5 per cent. In the survey tabled in Parliament on Monday, forecasts were, however, weighed down by rising global crude oil prices and the expected financial requirements of the general elections in 2019. It called for a modest consolidation in the fiscal deficit and suggested that the government focus on finishing its ongoing reforms in agriculture and GST. Growth could be even higher at close to 8% if macroeconomic stability is maintained, ongoing reforms are stabilised, and the world economy remains buoyant. The government’s growth projection are in line with analysts’ estimates. CARE Ratings said its GDP estimate for 2018-19 is 7.5 per cent. The survey cautioned that high oil prices remained a key risk for a country that relies on imports for much of its fuel needs.