India's GDP growth forecast at 7.1% for FY20

Mumbai: The country's median GDP is forecast at 7.1 per cent for FY20 and 7.2 per cent for FY 21, according to a survey.

The industry body Ficci's economic outlook survey said the minimum and maximum growth estimate stood at 6.8 per cent and 7.3 per cent, respectively, for 2019-20.

The survey was conducted in May 2019 among economists belonging to the industry, banking and financial services sectors.

The median growth forecast for agriculture and allied activities was pegged at 3 per cent for FY20, while industry and services sectors are expected to grow by 6.9 per cent and 8 per cent, respectively, during the year.

The median growth forecast for IIP has been put at 4.4 per cent for FY20, with a minimum and maximum range of 3.3 per cent and 5.5 per cent, respectively.

Inflation is expected to remain moderate and the Wholesale Price Index (WPI) based inflation rate is projected at 3.1 per cent in 2019-20, with a minimum and maximum range of 2.1 per cent and 4 per cent, respectively.

While, the Consumer Price Index (CPI) based inflation has a median forecast of 4 per cent for 2019-20, with a minimum and maximum range of 3.5 per cent and 4.1 per cent, respectively, it said.

"Concerns remain on external front with median current account deficit forecast pegged at 2.1 per cent of GDP for 2019-20. Median export growth is pegged at 4 per cent in 2019-20.

Imports, on the other hand, are forecasted to grow at 3.8 per cent in the same year," it added.

With escalation in trade war clouding the global trade growth outlook, which is having an impact on overall world economic growth as well, the economists were less optimistic about the prospects of India's exports in the current year.