Structural reforms to boost India’s growth to 7.7%,says CII
On Monday, Industry chambers Confederation of Indian Industry (CII) said that it expects India’s economy to grow at 7.3-7.7 per cent in 2018-19 on the back of sustained structural reforms, recovery in global markets and a normal monsoon.
Sustained structural reforms have led to a rebound in the country’s economy as businesses across several key sectors experience firm growth trends, the CII added. According to CII, strong rural consumption is reflected in sectors such as consumer non-durables, two-wheelers and tractors. CII also noted that capital goods sector has shown a steady improvement and order books are filling up. This sector is a key indicator of a country’s economic activity.
Eight key areas were pointed by the CII statement, where reform measures have unlocked growth forces like the introduction of the GST; strong emphasis on ease of doing business; Insolvency and Bankruptcy Code; increase in the Foreign Direct Investment (FDI) limits in sectors such as insurance, real estate and defence manufacturing.
Besides, a rise in infrastructure spend; initiatives to strengthen micro, small and medium enterprises (MSME) and initiatives in agriculture have helped improve rural incomes.