RBI retains GVA growth at 7.3% for FY18

Growth will be driven by consumption but reduction in lending rates should support investment demand

Gross value added (GVA) would grow by a higher rate of 7.3 per cent in the current financial year, against 6.6 per cent a year ago, the Reserve Bank of India said on Wednesday.

The growth would be driven by consumption, it said in its Annual Report for FY17, but reductions in bank lending rates after demonetisation should support investment demand of stress-free companies.

The announcement comes a day before the release of the gross domestic product (GDP) data for the first quarter of 

2017-18.

Continuing re-monetisation should enable a pickup in discretionary consumer spending, especially in cash-intensive segments, the annual