New Delhi: Bibek Debroy, chairman of Prime Minister Narendra Modi’s economic advisory council, said on Monday that the economy is poised to grow at close to 7.5%, the upper end of the 7-7.5% range forecast by the Economic Survey 2017-18, in 2018-19.
In a statement endorsing the optimism expressed in the Survey, Debroy listed a likely pick-up in exports, private investments and consumption as growth drivers in the next financial year.
“The chairman of EAC-PM endorsed the pick-up in growth highlighted in the Survey, but was of the view that in 2018-19 the real gross domestic product (GDP) growth rate is likely to be closer to 7.5% rather than 7%," said an official statement.
The Economic Survey, authored by chief economic adviser in the finance ministry Arvind Subramanian, also said the economy is likely to grow at 6.75% in 2017-18 against 6.5% estimated by the Central Statistics Office (CSO).
Debroy called the projections in the Survey “optimistic in tone", taking into account the government’s resolve to carry forward reforms.
Anis Chakravarty, partner and lead economist at Deloitte India, said the Survey portrayed a cautious yet optimistic picture of the economy. “For FY19, a range of 7-7.5% for GDP has been forecast , which shows a meaningful acceleration in growth momentum even in the face of some challenges. Exports are slated to fare better over the next year and hence reduce the drag from net imports on the GDP," he added.
Debroy also said the government is committed to fiscal consolidation and prudent public expenditure.