India to grow at 7.6 per cent in FY`17

The near-term growth outlook for India seems brighter than last fiscal and the economy is likely to expand at 7.6 per cent in 2016-17, the Reserve Bank said on Monday.

‘Overall GVA (gross value added) growth is projected at 7.6 per cent in 2016-17, up from 7.2 per cent last year,’ RBI said in its Annual Report 2015-16.

A better than anticipated agricultural performance and the possibility of allowances under the 7th Pay Commission’s award being paid out in the fourth quarter of 2016-17 provide upsides to this projection, it said.

On the other hand, a rise in the implicit GVA deflator, as Wholesale Price Index (WPI) based inflation hardens, will operate as a statistical downside, RBI said.

The effects of Brexit on the Indian economy have been relatively muted, including the immediate impact on equity and foreign exchange markets, it added.