GDP to be expected at 6.5% for FY 2017-2018
2 months ago Rajeev K Sharma 0
Gross Domestic Product for the financial year 2017-18 has been estimated at 6.5% by the government which is less than the previous FY 2016-17 GDP of 7.1%. The first estimate of GDP for the financial year 2017-18 have put pressure on Finance Minister Arun Jaitley‘s budget which is likely to present on Feb 1st, 2018. Finance Minister really needs to cut spending by approximately 15,000 Crore to meet the fiscal deficit target to maintain GDP.
According to the GDP forecast, the government is expecting growth of 2.1%. However, this was about 4.9% during the FY 2016-17 which is less. But the government is expecting an increase in Finance, Real Estate & Professional services sector by 7.3% which is far better the previous FY2016-17 forecast of 5.7%. According to the Statistics Ministry, the GDP is expected at 6.5% compared with the current Bloomberg consensus of 6.6%. According to the experts, public spending is very crucial however it been noticed that the private investment has been weak, the new investment proposals fell to a record of 79,000 Cr of the quarter ended in December 2017 which is again alarming for the government.
In a private firm survey for December 2017 that there was an increase in Factory movements during the last five years which is a remarkable recovery of the GDP April-June 2017 which was just 5.7% and it was at its lowest level for the last three years. Market analyst confirms this lowest GDP because of GST coming into effect from July 1, 2018. According to the minister Mr. Suresh Prabhu, we are working to clear all the issues regarding GST and we are expecting good GDP further. All eyes are focused on Budget 2018 presented likely on February 1, 2018.