Demonetisation and GST disrupted the Indian economy, so much so that GDP growth fell to 5.7% in the April-June 2017. Economic affairs secretary Subhash Chandra Garg said the momentum in the fiscal fourth quarter GDP numbers should see the economy through in 2018-19. The finance ministry is, however, not revising its 7.5% GDP growth forecast for the current year, Garg said. While high oil prices may pose a risk to economic recovery and the inflation outlook, forecast of a normal monsoon by India’s weather office could mitigate farm distress and boost rural demand this year. “As and when FPIs take note that oil prices have stabilized and possibility of further rupee depreciation is limited, they will come back,” he added.

Source: Mint May 31, 2018 12:08 UTC