RBI (Reserve Bank of India) Governor Urjit Patel said that the Indian Economy has made strong performance in the financial year 2017-18 and is expected to accelerate economic growth in the current financial year. In a meeting of International Monetary and finance Committee of the International Monetary fund, Mr Patel said that the Indian economy has been strengthened by the growth in manufacturing, sales growth, strong performance of the service sector and the record level of the agriculture crop.
Urjit Patel further said that although the actual GDP (Gross Domestic Product) growth in the year 2017-18 was slightly lower than the 7.1% a year ago to 6.6%. But with increased demand for investment, the strength in the second half came back, The Reserve Bank Governor said that the Indian economy has made strong performance in 2017-18. Increase in manufacturing & sales, increase in capacity utilization, strong service sector activity and record harvest made significant contribution in the performance.
He said: there are many reasons which will be helpful in accelerating the growth rate of the year 2018-19. It is a clear indication that investment activities will continue to improve. Governor said that global demand has improve, which will lead to export and new investment and GDP growth in the financial year 2018-19 is expected to increase to 7.4%.
He assured that the government is committed to running a consultative approach on the fiscal front. He said that due to the increase in tax revenue and favourable to the subsidy, the government has reduced the Gross State Deficit to 3.5% of GDP in 2017-18. For it, there was no agreement with the expenditure in the public investment requirements and social sector expenditure. The target of bringing the Gross Fiscal Deficit to 3.3% of GDP in 2018-19.