In a sign of assurance on economic front, Moody’s Investors Service has estimated that India will grow 7.6 per cent in calendar year 2018 and 7.5 per cent in 2019. The development is read as a sign of economic recovery from impact of demonetisation and GST.
“There are some signs that the Indian economy is starting to recover from the soft growth patch attributed to the negative impact of the demonetisation undertaken in 2016 and disruption related to last year’s rollout of the Goods and Service Tax,” the investor service said.
The Budget for 2018-19 includes some measures that could stabilise the rural economy that was disproportionately hit by the demonetization policy and is yet to recover, it said.
“As we have said before, the bank recapitalisation plan should also help credit growth over time, thereby supporting growth,” Moody’s said.
The issue of economic performance of the NDA government has been at a forefront with Opposition criticising government policies. On the other hand, government has firmly held that reforms in the shape of GST and demonetisation will pay dividends in the longer run.
(With inputs from PTI)