Economy may grow by over 6.5% in FY18 as inflation eases: Arvind Panagariya

Reversing a 5-quarter slide in GDP growth, the economy bounced back from 3-year low to expand by 6.3% in July-Sept

Noted economist and former vice-chairman of NITI Aayog Arvind Panagariya expects the economy to grow by over 6.5 per cent in the current financial year.

He said the macroeconomic indicators have remained stable for the past three years with current account deficit hovering around one per cent and inflation moderating.

"Expectations of implementation of the goods and services tax (GST) beginning July 1, 2017 led to some disruptions in supply during the April- June quarter with the quarterly growth rate declining to 5.7 per cent," Panagariya said.

"But we should see recovery coming our way with the growth rate during 2017-18 reaching