Government Says 7.6% Growth Projection Reflects Reforms Paying Off

New Delhi: The Finance Ministry on Monday said the projected 7.6 per cent growth rate for the current fiscal year is satisfactory and is a reflection of the policies and reform measures taken by the government in the last 19 months.

"Overall, what is important is the direction of the numbers... there is improvement in the numbers which is quite satisfying."

"The policies and the reform measures the government has undertaken in last one and half years are beginning to show results. The policies and reform measures will continue," Economic Affairs Secretary Shaktikanta Das told reporters.

Late at night, Mr Das in a tweet said, "Underlying direction of GDP growth projection (7.6 per cent) for FY16 is very positive. Manufacturing growth is good signal for Make in India."

He was reacting to the advance estimates for national income of 2015-16 fiscal by the Central Statistics Office (CSO) which earlier in the day projected the GDP growth rate at 7.6 per cent.

According to the data, the economy grew at 7.6 per cent in first quarter, 7.7 per cent in second quarter and 7.3 per cent in the third quarter ending December 31, 2015.

"Especially satisfying and noteworthy is the industrial growth with special focus on manufacturing. Agriculture continues to be a matter of concern because of consecutive drought. Overall the direction of the numbers is very positive," Mr Das said.

The CSO's estimate of 7.6 per cent growth in current fiscal year is higher than the projection by the RBI, the Finance Ministry and the International Monetary Fund (IMF).

While the RBI projected a growth rate of 7.4 per cent, the Finance Ministry's mid-year economic review had estimated the growth to be between 7-7.5 per cent.

Besides, the IMF had said India will clock 7.3 per cent growth in 2015-16 and ADB projected it at 7.4 per cent.