India heads for 7.8% GDP growth rate this fiscal

Indian economy is heading for a cyclical recovery driven by investments as well as consumption resulting in an average GDP growth of 7.8 per cent in the first half of this year, concluded, Japanese financial services major, Nomura in its recent research note wherein it reiterated that the investment and consumption demand are the main drivers for India’s growth, amid worsening net exports. The leading indicators suggest the cyclical recovery, which started in the second half of 2017 and is set to continue through the first half of 2018. Consistent with these data, agency expects an average GDP growth to rise to the targeted rate year-on-year basis in the first half 2018 from 7.2 per cent in October-December 2017. The report, however, noted that rising oil prices, tighter financial conditions may result in slowdown in investment activity ahead of the elections suggest that growth will start to moderate in the second half of this year.