Fitch said gradual implementation of government reforms is expected to contribute to higher economic growth, as will higher real disposable income. It also cut GDP growth forecast for 2018-19 fiscal year to 7.3% from 7.4% predicted in its September global economic outlook (GEO). Fitch, however, expects GDP growth to pick up in the next two years on back of gradual implementation of the structural reform agenda and higher real disposable income. “Recent moves by the government should help support the growth outlook and enhance business confidence,” it said. Also, the Rs6.9 trillion, or 4.5% of GDP, road construction plan may encourage the investment growth outlook.

Source: Mint December 04, 2017 16:18 UTC