Indian economy to grow 7.1% this fiscal: Fitch

Written by March 7, 2017 13:13

New York, Mar 7: Global rating agency Fitch today said, Indian economy will grow by 7.1 per cent in the current fiscal before stepping up to 7.7 per cent in the next two financial years.

Worker climbs up to a pillar of an under construction metro pillar in Kolkata

The US-based agency has termed the 7 per cent GDP growth for the October-December quarter as surprising and a tad lower than 7.4 per cent in the previous quarter.

It said the December quarter GDP number suggests that economic activity was hardly hit by the cash crunch after the government’s move to remove 86 per cent of currency in circulation overnight.

Fitch said, gradual implementation of the structural reform agenda is expected to contribute to higher growth, as will higher real disposable income.

Fitch projection of growth for this fiscal is in line with the estimates of global think-tank The Organisation for Economic Co-operation and Development, OECD. The rating agency said it expects the policy interest rate to stay at its current level of 6.25 per cent.