RBI report sees India's economic growth rate at 7.3% in 2017-18

The Reserve Bank on Friday said the ongoing accelerated reform initiatives like Goods and Sevice Tax and continuing political stability will push the economic growth scale to 7.3 per cent in terms of Gross Value Added -GVA in the current fiscal year. 

The Financial Stability Report 2017, released on Friday, going forward, reforms in FDI and real estate sector, implementation of GST, and revival in external demand are likely to contribute to a better growth outlook. According to the RBI report, GVA growth is expected to be



higher at 7.3 per cent in 2017-18. 

The Report projected CPI inflation to be in the range of 2-3.5 per cent in the first half of the year and 3.5-4.5 per cent in the second half. It stated that Retail inflation, excluding food and fuel that remained sticky during H2 of FY17 at around 4.9 per cent, dipped to 4.3 per cent in April and 4.2 per cent in May 2017, largely reflecting the impact of decline in global crude oil prices on transport and communication and moderate price pressures in services.