Last week the Reserve Bank of India (RBI) lowered its FY18 growth forecast to 6.7 per cent (gross value added), down from its earlier prediction of 7.3 per cent.
As gross value added (GVA) already grew by 5.6 per cent in Q1FY18, this revision, while downwards, implies that the central bank now expects the economy to grow by an average seven per cent over the rest of the financial year.
A look at the leading economic indicators suggests that the economy may well have bottomed out.
As shown in Chart 1, core GVA, which excludes agriculture and public administration, had