DBS sees over 7% growth in FY2019

There are encouraging signs that India’s economic and investment growths have bottomed out and a gradual recovery is underway, said Singapore banking group DBS in its economic report on 12 Jan 2018.

Investment growth has bottomed out, though recovery will be drawn-out due to legacy issues of high debt, which has translated into high bad loans with banks, it said.

DBS cited the government’s advance projection of 6.5% growth for fiscal year 2018. “We expect GDP growth to average 6.6%,” said the bank.

It sees an improvement in investments at 4.5% in FY18 from 2.4% in FY17.

But DBS remains optimistic, projecting the Indian economic growth at over 7% for fiscal year 2019.

Elaborating, it said the growth will be on stabilisation in post-Goods and Services Tax activity helped by more fine-tuning measures, trickle-down benefits from the bank-recapitalisation efforts, a higher fiscal deficit target, and stronger investment growth. fii-news.com