Indian economy to grow over 7.5% in FY19, says Piyush Goyal

RBI had last week lowered the economic growth projection for 2017-18 to 6.6%.

Indian economy to grow over 7.5% in FY19, says Piyush Goyal

New Delhi: Union minister Piyush Goyal today said the country's economic growth is likely to cross 7.5 percent in the next financial year.

"I believe we will close this year upwards of 6.7 percent. Next year should to my mind cross 7.5 percent. All the signs are there for us to see," Goyal, who is holding key portfolios of railways and coal, said here.

He was addressing a post budget talk — jointly organised by FICCI, Business Line and Sastra Deemed University.

"From the GDP growth of 5.3 or 6.3 percent in the last two years of the UPA government, I think that the GDP that BJP-led NDA government has given to this nation is certainly a matter of great satisfaction for us," Goyal asserted.

Taking a jibe at the previous government, the minister said that "of course the fiscal deficit at 5.9 percent under the UPA was certainly far better than the fiscal deficit of 3.2 percent that the BJP is targeting" for the next year.

"It's first time in my life that I heard that 5.9 percent fiscal deficit in 2011-12 was more fiscally prudent than 3.2 percent under Modi government. This is new economics...Because it seems now that high fiscal deficit is fiscal prudence and low fiscal deficit is imprudence," Goyal said.

The Reserve Bank of India (RBI) had last week lowered the economic growth projection for 2017-18 to 6.6 percent but had said that it will accelerate to 7.2 percent in the next financial year as the rollout of GST stabilises and credit offtake improves.

For the next financial year, 2018-19, the apex bank had said that the implementation of the Goods and Services Tax (GST), rolled out on July 1 last year, is stabilising and augurs well for an economic activity. 

 

(With PTI inputs)

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