India Economy To Grow At 5.6 Percent In 2014-15: India Ratings

NEW DELHI: India is likely to grow by 5.6 percent in 2014-15 against a projected growth of less than 5% in the current fiscal, a report by India Ratings and Research has said.

"The global economy in 2014 appears to be in a better shape than what it was in 2012 and 2013. India Ratings forecasts India's GDP to grow at 5.6 percent in 2014-15," the rating agency said.

"The economic growth in FY15 is likely to be contributed majorly by the industrial sector, which is estimated to grow by 4.1 percent. This is good news for centre as well state government finances," it added.

The rating agency also expects merchandise exports to grow by 8-10 percent in the next fiscal year.

It expects a minor slippage in consolidated state deficit from the budgeted FY14 estimate.

"Aggregate state's fiscal slippage in FY14 is estimated at 0.1 percent of GDP. Consolidated state fiscal deficit in FY14 is likely to 2.3 percent of GDP vis-a-vis 2.2(BE)," the report said.

It further said that state governments' debt in 2013-14 is estimated to increase marginally to 21.7 percent of GDP from budget estimate of 21.5 percent.

The agency, however, said that it maintains a stable outlook on state government finances for the next fiscal.

"India Ratings maintains a stable outlook on state government finances for FY15 as it expects consolidated state finances to remain resilient to the on-going economic slowdown," the rating agency said.