India GDP growth to stay flat at 7.1% in 2017-18, say HSBC


NEW DELHI: India’s economic growth is likely to stay flat at 7.1 per cent in present fiscal as investment is still frail and government expenses might not be as lofty given the fiscal alliance, HSBC stated.

As per the global financial services major, the GDP expansion momentum is deliberate since mid-2016 and this trend is likely to carry on going forward.

“Looking ahead, our below-consensus view is that growth will remain flat at 7.1 per cent in 2017-18,” HSBC Chief India Economist Pranjul Bhandari stated.

The official record revealed that India’s growth rate fall to 6.1 per cent in the January-March quarter and 7.1 per cent during 2016-17.

The leisurely momentum in GDP development rate is probable to persist as asset is still frail, while government expenses may not stay as high given the fiscal coalition path and the climb in exports over the last few months are displaying some mark of fairness.

Despite the information that rural growth could come in soaring if rains are physically powerful, but that would just about counterbalance the flaw from other sectors, it added.

Concerning price growth, HSBC recorded that a negative output delay is likely to keep inflation at low levels and the Reserve Bank is expected to admit this in the forthcoming policy review meet.

“We anticipate that the RBI will recognize in the up and coming June 7 meeting that swelling has slanted lower than anticipated. We anticipate that the RBI will keep rates on hold over the not so distant,” HSBC stated.

On April 6, The Reserve Bank in its monetary policy review meet set aside the repurchase or repo rate — at which it provide to banks — unaffected at 6.25 per cent, but improved reverse repo rate to 6 per cent from 5.75 per cent.