Economy may reach 7% growth in 2018: ASSOCHAM

The Indian economy may reach a 7 percent growth in 2018 with government policies tilting towards the stress-ridden rural landscape, the recently released ASSOCHAM Year-Ahead Outlook (AYAO) pointed out.

The AYAO forecast also pointed out that after disruptions like demonetisation effect and GST roll-out, the economic expansion may reach the crucial 7 percent mark by the end of September 2018 quarter.

“Inflation may range between 4-5.5 percent towards the second half of the next calendar year with the monsoon being a key imponderable”, AYAO said.

“Our projections for 7 percent GDP growth are based on the assumption of stability in the government policies, a good monsoon, pick-up in industrial activity and credit growth as also stability in the foreign exchange rates. The worries on account of crude oil shooting up are likely to abate if there are no fresh geo-political shockers,” said ASSOCHAM President Sandeep Jajodia.

The AYAO said that while the underlying bullish sentiment should continue to prevail in the Indian stock market in 2018, the returns on equity may not be as robust as in 2017.

ASSOCHAM outlook said that the Indian economy is also likely to tilt towards the farm sector which has been witnessing some stress.