Indian economy expected to grow at 5.6% in FY'15: FICCI

Indian economy will expand by 5.6% during 2014-15, even as the Reserve Bank is not likely to cut interest rates this year, says a PTI report citing FICCI's recent Economic Outlook Survey.

Indian economy will expand by 5.6 per cent during the fiscal year 2014-15, according to FICCI's latest Economic Outlook Survey.

"The new government guided by the objective of restoring growth and governance has given very positive policy signals in its first 100 days. We see the confidence amongst investors slowly returning and hope that going ahead the momentum on implementation front will build up," said the survey.

Retail inflation is expected at 7.8 per cent this fiscal, in sync with RBI's indication earlier this year. The minimum and maximum range for GDP growth in the current fiscal is indicated at 5.3 per cent and 6 per cent respectively, as against 5.3 per cent estimated in the previous round of the Ficci Survey.

This reflects a clear return in optimism and the economic activity is expected to continue with this momentum in the second half of the current fiscal year as well, Ficci said.

While agricultural growth is expected to grow by 4.7 per cent in FY15. Whereas, the growth in the services sector is expected to remain at similar levels as was reported last time. The sector is likely to grow by 6.9 per cent in FY15.

The CAD to GDP ratio for FY 15 was projected at 1.9 per cent. They also felt that the macro-economic fundamentals are gradually strengthening and the overall health of the economy is set to improve going ahead.

Image courtesy: