New Delhi: The Indian economy is likely to witness gradual cyclical recovery, mainly driven by consumption led demand and is likely to clock a GDP growth of 7.7 per cent in the next financial year, says a Citigroup report.
According to the global financial services major, the gradual recovery process would continue going forward with consumption edging investment (supported by the implementation of the seventh pay commission).
"A period of consolidation would see GDP growth at 7.7 per cent in financial year 2016-17," Citigroup said in a research note.
According to data of the Central Statistics Office (CSO), the economy is expected to grow at a five-year high of 7.6 per cent in the current fiscal.
The CSO data showed that the economy grew at 7.6 per cent in the first quarter, 7.7 per cent in second and 7.3 per cent in third.
Citing quarterly trends, the report noted that there might be some scope for downward revisions to the data.
"In order to meet the financial year 2015-16 growth of 7.6 per cent, the fourth quarter (January-March) GDP growth will have to accelerate back to 7.7 per cent. This suggests some scope for downward revisions later as a cloud of global uncertainty hangs over the fourth numbers," the research note said.
Moreover, manufacturing growth of 12.6 per cent in the third quarter was in contrast to market expectations of slower growth caused by flood-related disruptions in southern states, it added.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
According to the global financial services major, the gradual recovery process would continue going forward with consumption edging investment (supported by the implementation of the seventh pay commission).
"A period of consolidation would see GDP growth at 7.7 per cent in financial year 2016-17," Citigroup said in a research note.
According to data of the Central Statistics Office (CSO), the economy is expected to grow at a five-year high of 7.6 per cent in the current fiscal.
The CSO data showed that the economy grew at 7.6 per cent in the first quarter, 7.7 per cent in second and 7.3 per cent in third.
Citing quarterly trends, the report noted that there might be some scope for downward revisions to the data.
"In order to meet the financial year 2015-16 growth of 7.6 per cent, the fourth quarter (January-March) GDP growth will have to accelerate back to 7.7 per cent. This suggests some scope for downward revisions later as a cloud of global uncertainty hangs over the fourth numbers," the research note said.
Moreover, manufacturing growth of 12.6 per cent in the third quarter was in contrast to market expectations of slower growth caused by flood-related disruptions in southern states, it added.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
