Economic Affairs Secretary S.C. Garg. Photo: Mint
Economic Affairs Secretary S.C. Garg. Photo: Mint

GDP growth to exceed 7.5% this fiscal, says finance ministry

Fiscal deficit will not exceed 3.3% of GDP in 2018-19, says Economic Affairs Secretary S.C. Garg

New Delhi: Enthused by 8.2% GDP growth in the first quarter of 2018-19, the finance ministry today expressed optimism that economy was likely to expand at 7.5% in the current fiscal.

The country’s economy is on steady growth path, Economic Affairs Secretary S.C. Garg said while commenting on the April-June quarter growth number. The robust performance of the first quarter gives hope that growth could exceed even estimates of 7.5% this fiscal, he said.

Fiscal deficit will not exceed 3.3% of GDP in 2018-19, he added. On the falling rupee, he said it will soon be in the range of 68-70 against the US dollar. The rupee closed today at a record low of 71 against the US dollar.

The growth rate cemented India’s position as the fastest growing major economy, clocking a higher expansion rate than China’s 6.7% in the same quarter.

The Reserve Bank of India in its annual report released on Wednesday said the acceleration of growth that commenced in the second half (October-March) of 2017-18 is expected to be consolidated and built up on in the current financial year. The RBI expects the economy to accelerate to 7.4% in FY19 from 6.7% a year ago.

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