India’s GDP growth projected at 7.7%

India’s GDP growth has been projected at 7.7% in a report released by Rating agency ICRA.

Estimation

The GDP growth for the current fiscal is estimated at 7.6% in current fiscal and it is projected to grow to 7.75% in 2016-17

Reasons

• Increase in domestic consumption post the implementation of the Seventh Central Pay Commission’s recommendations and One Rank One Pension (OROP)
• Rs 1.2 lakh crore in Plan expenditure in 2016-17 will influence the pace of infrastructure augmentation and economic growth
• Hikes in excise duty has brought a revenue of 17,000 crores

Points to know

• New projects worth of 2 lakh crore was concentrated in electricity, machinery, transport equipment, transport services and miscellaneous services
• Project completion declined by 8% in the third quarter
• This was due to the lack of timely clearances and a low pickup in demand
• Projects worth 20,000 crores was stalled in the third quarter

Key points

• ICRA- Investment Information and Credit Rating Agency
• ICRA Non executive Chairman- Arun Duggal