Why economic recovery may be muted in FY19 despite big manufacturing push

Trend likely to continue next fiscal, with world economy seen slowing and there being no let up in the US-China trade spat; RBI may change stance with inflation cooling

The economy is officially projected to register a gradual recovery from 6.7 per cent growth rate in 2017-18, the lowest under the Modi government, to 7.2 per cent in the current financial year. 

The fact that the estimate at the start of financial year 2018-19 was 7.5 per cent and even the Reserve Bank of India's conservative projection was 7.4 per cent, points to a no-so-rapid recovery in the current financial year, especially considering that the impact of demonetisation and GST roll out is fading away. 

In fact, when the economy grew at 8.2 per cent in the first quarter