Daily O

Why 2018 will see sustained growth for Indian economy

Revival in bank credit, improved corporate performance and increased demand will lead India's growth story.

The year 2018 promises to be a year of sustained recovery for the Indian economy. While many analysts are not fully convinced about India's growth trajectory, the reality is that the economy has returned to its high growth path.

Stagnation in private investment has often been cited as a key constraint for the growth story, having fallen from 29.8 per cent to 28.9 per cent of GDP in the second quarter of 2017-18 (constant prices). However, over the past few months, the current government has been focused on creating an enabling environment for private investment should increase growth in public sector bank (PSB) lending. Bank credit is critical to the recovery in private capital expenditure.

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