HSBC pegs FY16 growth at 7.4%
Q. Growth in FY16 has been pegged at which percentage, according to HSBC?- Published on 05 Jan 16a. 7.2
b. 7.3
c. 7.4
d. 7.5
ANSWER: 7.4
Foreign brokerage firm HSBC said the country is current amidst a credit less recovery and policy reforms were the main step to attaining higher growth. Economists have also expressed dissent with the new method of GDP computation and said the economy will clock 7.4% in FY16 and remain stable in FY17 as well. During this phase of credit less recovery, sectors like investment which rely on external funding take the longest to revive. The macro side is facing fiscal trilemmas according to economists where the main challenge was funding higher wages at the same time, lowering fiscal deficit and continuing government capex.
