Rakesh Mittal, president at CII and A Prasanna, chief economist at I-Sec PD, spoke to CNBC-TV18 about the economic outlook for 2019.
Prasanna said,"In terms of macros, 2019 is shaping out to be better. Inflation is down and with oil prices coming down the current account deficit is not a worry but the only worry remains on the fiscal deficit."
He said, “For FY19, we are looking at 7.3 percent GDP growth and FY20 7.4 percent and lower oil prices and lower interest rates should help. But though global growth is slowing down could be a big negative for India.”
When asked about his wish list from the government for the Indian Inc standpoint, Mittal said, “This year is expected to be a stable year for Indian economy including global growth, which is expected to be 3.7 percent. Moreover, oil prices stabilizing, rupee volatility reducing are huge positives, which will continue till March 2019."
On the interest rate front, Prasanna said, "Not expecting any rate cuts at this point of time but if oil stays low around USD 55/bbl and inflation undershoots then one could see rate cut in February."
"The Federal Reserve will likely delay its next rate action to May or June, said Prasanna. So, they may continue to tighten but not as severe as it was in 2018, which could be positive for India," he added.
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