The Reserve Bank of India estimates that in the current financial year 2018-19, the growth rate of the country’s gross domestic product (GDP) will go up to 7.4%. The central bank estimates that in the current financial year mainly the improvement in investment activities will increase the economy.
In the first review of the current financial year released after the two-day meeting of the Reserve Bank of India’s Monetary Policy Review Committee, it has been said that this growth rate in the first half will be 7.3 % to 7.4 %, and in the second half, it will be 7.3 %to 7.6 %. The central bank said, “Overall GDP growth will increase from 6.6 percent in 2017–18 to 7.4 percent in 2018–19.”
The Reserve Bank said that owing to several factors, economic activity will accelerate during the year. The Reserve Bank said, “Clear signs of improvement in investment activities can be seen. Capital production and manufacturing of goods has increased. Imports are on the rise, although its speed has slowed down in January. Apart from this, global demand is improving. This will encourage exports, which will bring new investment. The Economic Review presented in the Parliament on January 29 states that India would all over again recover the status of the fastest growing economy in the world and the GDP growth rate of 2018–19 would be 7 to 7.5 %.
The growth in GDP can be attributed to many factors such as ease of doing business, boost in agricultural production, enhanced industrial outputs, favorable government policy, deliverance of advanced infrastructure such as roads, airports, power facility and others, introduction of various reforms to smoothen financial and taxation systems, and most important balanced demand to fulfillment ratio with constant spur in the graph.