The figures could not immediately be confirmed before the official
release of the report, copies of which were delivered to parliament on
Friday morning and are due to be handed out at midday (0630 GMT).
India's government
expects growth to hold up and inflation to decline next year, TV
channels reported on Friday, ahead of a pre-budget Economic Survey that
will set the scene for Finance Minister Arun Jaitley's budget on Monday.
The
survey, to be published shortly, is expected to forecast that Asia's
third-largest economy would grow by between 7.0 percent and 7.5 percent
in the fiscal year starting on April 1, according to sources cited by ET
Now and Bloomberg TV.
Inflation was
expected to decline to 4.5 percent to 5.0 percent in the 2016/17 fiscal
year, within the Reserve Bank of India's target, while the current
account deficit would remain low at 1.0 percent to 1.5 percent of gross
domestic product, they said.
The figures could not
immediately be confirmed before the official release of the report,
copies of which were delivered to parliament on Friday morning and are
due to be handed out at midday (0630 GMT).
Jaitley
faces a tough choice on whether to raise fiscal deficit targets to pay
for ambitious investments and big public sector pay hikes in his third
budget.
Although Asia's third-largest economy has
overtaken China's as the world's fastest growing, weak business
investment and a growing bad loan problem at state banks will compel
Prime Minister Narendra Modi to keep the spending taps open to deliver
on his promise of jobs for India's 1.3 billion people.
The
report's author, economic adviser Arvind Subramanian, has argued in
favour of increasing the deficit, only to be rebutted by central bank
governor Raghuram Rajan who argues that India should keep its power dry
in case the weakening world economy tips into a recession.
Post a Comment