Domestic demand, investment to drive growth, says Economic Review

The Indian economy will grow on the strength of domestic demand and investment despite a rise in global uncertainties and moderation in global output, the economic review for June released on Thursday said.

- Rhik Kundu

However, negative cross-border spillovers and adverse global developments can act as a deterrent to achieving the potential high-growth path in the current financial year, the report added.

The Economic Review released by the finance ministry's department of economic affairs (DEA) said that the government's emphasis on capital expenditure in recent years has given a much-needed thrust to investments in key infrastructure, resulting in crowding in of private investment to kick-start job creation, income, productivity, demand and exports.

These will be supported by favourable demographic dividends over the coming years, it said.