NCAER indicates India's GDP growth at 7.6 pct in 2016-17

The National Council of Applied Economic Research (NCAER) has pegged India's GDP growth at 7.6 percent for the current fiscal on back of pick-up in rural demand and positive signals on the manufacturing front.

According to a report by NCAER, the Indian economy expanded at 7.6 percent in 2015-16 while on the other hand it anticipated improvement in agricultural sector and associated increase in rural demand to give an upward push to economic growth.

It also indicated that the domestic aviation sector growth continues to be robust.

"Food inflation is also showing signs of dampening in the latter part of the second quarter. However, fuel inflation may revive. Although urban demand is predicted to remain strong, external demand continues to be volatile," adds the NCAER statement.

It further said that India's fiscal position remained under stress during first half of the current fiscal.

Despite healthy growth in tax revenues, the combination of rising expenditure and lower-than-expected non-tax revenues is likely to test the government's resolve to abide by the fiscal deficit target set out in Budget 2016-17, NCAER added.