New Delhi, Apr 23 (KNN) Representing the Indian side, RBI Governor Urjit Patel on behalf of Finance Minister Arun Jaitley  during his statement at International Monetary and Financial Committee in Washington DC said that the country is on right track and is expecting boost in exports and newer investments.

Patel said that though the real GDP moderated to 6.6 per cent from 7.1 per cent in the previous fiscal, the country observed a strong rebound in the second half of the year facilitated by a turnaround in investment demand.

Also the accelerated manufacturing and rising sales growth along with a pick-up in capacity utilization helped India hold its ground.

Strong activity in the services sector and a record agricultural harvest are other factors that helped push the country’s economy, Patel added.

Commenting on the expected pace of growth in 2018-19, the RBI governor said that now there are clearer signs that hat the revival in investment activity will be sustained.

“Global demand has been improving, which should encourage exports and boost fresh investments. On the whole, real GDP growth is expected to expand at 7.4 per cent in 2018-19, with risks evenly balanced”, the official statement said.

Mentioning about export-import prospects, Patel said that the external financing conditions remain comfortable, thus allowing better inflow of FDI.

The UNCTAD’s survey of multinational enterprises ranked India as the third most favoured destination for FDI for 2017-19. Reflecting these developments, India’s foreign exchange reserves at US$ 424 billion were equivalent of 11 months of imports, the governor said.

Patel also spoke of the recent structural developments including flexible inflation targeting framework for monetary policy; liberalization of FDI flows; a unique identification (Aadhaar) – backed direct benefit transfers; an insolvency and bankruptcy code; the GST and realty reforms, helping India move ahead. (With PIB Inputs) (KNN/DA)