Crisil revises Indian GDP forecast to 7% for FY18

The quarter ending in June witnessed a steep decline in the growth rate of the country to 5.7 per cent, resulting in India losing the tag of the fastest growing economy title yet again to China. The growth in this quarter was the lowest in the past 3 years. Disruptions due to GST can be expected throughout this fiscal, according to Crisil.

"We scale down our GDP growth forecast for fiscal 2018 to 7 per cent, from 7.4 per cent earlier. We believe GST- related disruptions will limit the upsides to growth for a few more quarters because there are uncertainties around the possibility of changes to the given tax structure and as businesses adjust to this new regime," said media reports quoting the report.

Contribution of exports to the economic growth of the country will be limited and manufacturing growth can also slump down to 7.6 per cent from 7.9 per cent in the current fiscal, notes Crisil. (KD)

ALCHEMPro News Desk – India