As per the Advanced Estimates released by Central Statistics Office (CSO), the growth of Gross Domestic Product (GDP) at constant (2011-12) market prices is estimated at 7.6% in 2015-16 indicates that despite uncertainties in the global economy, Indian economy stands out as a haven of macroeconomic stability, resilience and optimism and can be expected to register GDP growth that could be in the range of 7 to 7.75 % in the coming year. International Monetary Fund, in their World Economic Outlook Update (January 2016) has indicated that India is projected to continue growing at a robust pace.
As per the Budget 2016-17, the fiscal deficit as a ratio of GDP at current market prices is estimated at 3.9 % for the year 2015-16 (revised estimates). As per the Advanced Estimates released by Central Statistics Office (CSO), the growth of GDP at constant (2011-12) market prices is estimated at 7.6 % in 2015-16. This estimation has been done in accordance with the international best practices.
The fixed investment (measured by Gross Fixed Capital Formation) by the private corporate sector increased from 11.7 % of the GDP at current market prices in 2013-14 to 12.3 % in 2014-15 (the latest year for which data is available), despite indications of constraints like stressed assets. Investment depends on various factors that, interalia, include: expectations of demand viz-a-vis the available capacity, expected profit, business climate and interest rate. The Government has taken a number of steps to improve the business climate and boost investment n the economy which, among other, include: the “Make in India” initiative along with the attendant facilitatory measures for a more conducive environment for investment; Start-up India initiative to boost entrepreneurship and creation of jobs; opening up of specified sectors for foreign direct investment; and investment-augmenting tax measures. The Reserve Bank of India reduced the policy repo rates by 125 basis points during 2015.