National Council of Applied Economic Research has forecast 7.6 percent GDP growth rate in financial year 2016-17.<br/><br/>The think tank in it's mid-year review said, the anticipated improvement in the agricultural sector and the associated increase in rural demand will give an upward push to country's economic growth.<br/><br/>The think tank also said, food inflation is also showing signs of dampening in the latter part of the second quarter and fuel inflation may revive. It said, urban demand is predicted to remain strong and external demand continues to be volatile. <br/><br/>The report said, unlike past two years, this year witnessed a normal rainfall. With that, the area under Kharif sowing is about 3.5 per cent more than last year, with the sowing of pulses being about 29.1 per cent more than last year.<br/><br/>It said, 10 to 11 per cent increase is expected in the output of Kharif foodgrains over last year's output of 124 million tonnes.<br/><br/>It said, the manufacturing sector is also giving positive signals with the 'Purchasers' Managers Index' and 'Index of Industrial Production' for core sectors and auto sales are going up. NCAER said, domestic aviation sector growth continues to be robust. However, it said, other service index indicators continue to be muted.<br/><br/>The NCAER said, after a sequential up stick in inflation in the initial months the current fiscal to 6.07 per cent in July, it fell sharply in September to 4.31 per cent. After declining for 17 consecutive months, the Wholesale Price Index inflation turned positive in April this year, remaining at around 3.5' to 3.7 per cent. <br/><br/>It said, India's merchandise exports turned positive in June, with exports rising at 1.27 per cent 22.57 billion dollars, reversing the trend that started in December 2014 due to weak global demand and a fall in commodity prices. <br/><br/>After a decline in July and August, exports grew at 4.6 per cent in September, raising hopes that the decline period in Indian imports is coming to an end.<br/><br/>The economic think tank said, India's fiscal position remained under stress first half of this fiscal, despite healthy growth in tax revenues, the rising expenditure and lower 'than expected non 'tax revenues are likely to test the Government's resolve to achieve the fiscal deficit target set out in the Budget.

National Council of Applied Economic Research has forecast 7.6 percent GDP growth rate in financial year 2016-17.<br/><br/>The think tank in it's mid-year review said, the anticipated improvement in the agricultural sector and the associated increase in rural demand will give an upward push to country's economic growth.<br/><br/>The think tank also said, food inflation is also showing signs of dampening in the latter part of the second quarter and fuel inflation may revive. It said, urban demand is predicted to remain strong and external demand continues to be volatile. <br/><br/>The report said, unlike past two years, this year witnessed a normal rainfall. With that, the area under Kharif sowing is about 3.5 per cent more than last year, with the sowing of pulses being about 29.1 per cent more than last year.<br/><br/>It said, 10 to 11 per cent increase is expected in the output of Kharif foodgrains over last year's output of 124 million tonnes.<br/><br/>It said, the manufacturing sector is also giving positive signals with the 'Purchasers' Managers Index' and 'Index of Industrial Production' for core sectors and auto sales are going up. NCAER said, domestic aviation sector growth continues to be robust. However, it said, other service index indicators continue to be muted.<br/><br/>The NCAER said, after a sequential up stick in inflation in the initial months the current fiscal to 6.07 per cent in July, it fell sharply in September to 4.31 per cent. After declining for 17 consecutive months, the Wholesale Price Index inflation turned positive in April this year, remaining at around 3.5' to 3.7 per cent. <br/><br/>It said, India's merchandise exports turned positive in June, with exports rising at 1.27 per cent 22.57 billion dollars, reversing the trend that started in December 2014 due to weak global demand and a fall in commodity prices. <br/><br/>After a decline in July and August, exports grew at 4.6 per cent in September, raising hopes that the decline period in Indian imports is coming to an end.<br/><br/>The economic think tank said, India's fiscal position remained under stress first half of this fiscal, despite healthy growth in tax revenues, the rising expenditure and lower 'than expected non 'tax revenues are likely to test the Government's resolve to achieve the fiscal deficit target set out in the Budget.