Central Statistical Organisation (CSO) may project FY17 gross domestic product (GDP) growth at 6.8 to 6.9 percent in its second advance estimates, say government sources to CNBC-TV18. CSO will release the numbers on February 20.
Crude oil prices and pace of capital formation are two big worries the government has flagged off for financial year 2018.
Investment demand is at a five-year low with growth in gross fixed capital formation in 2016-17 going into negative at -0.2 percent compared to 2015-16. This is a major challenge for the government.
Another worry is crude oil prices. Prices have increased on the back of OPEC's (Organization of the Petroleum Exporting Countries) decision to cut production.
As the oil prices soar, it is unlikely that crude will be in the range of USD 55-60 per barrel.
The Indian crude basket is at around USD 55 per barrel and the Brent crude is at USD 55.97 a barrel.
In addition, the government has no plans to cut excise duty on fuel in the financial year 2017. A cut by rupee 1 in fuel excise will result in a revenue loss of Rs 11,000 crores.
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