In the wake of the recent announcement that the UK has officially entered a recession, the economic landscape appears increasingly challenging for Prime Minister Rishi Sunak and his Conservative government.
Niti Aayog Vice Chairman Rajiv Kumar expects India’s economy to grow by at least 7.5 per cent in 2018-19 on the back of improvement in investment cycle and capacity utilisation.
The government should now concentrate on consolidating the reform initiatives undertaken in the last 47 months, he added.
“The economic environment is extremely positive and optimistic. The investment cycle has certainly turned upwards. The capacity utilisation has risen to 74 per cent. The inflation is still well under the target.
“Foreign Direct Investment (FDI) is increasing and I expect rate of growth to be at least 7.5 per cent in 2018-19,” Kumar told PTI.
The economy is expected to grow at 6.6 per cent in 2017-18.
Asked what reform measures Modi government should take in the next one year, Kumar said, “The government has taken so many reforms and so many initiatives that I think it is now time to consolidate rather than plan for new initiatives.”