The average GDP growth in India is expected to rise to 7.8 per cent year-on-year in the first half of 2018 from 7.2 per cent in October-December 2017.
The economy is likely to witness a cyclical recovery driven by investments as well as consumption despite worsening net exports.

The recovery started in the second half of 2017.

Growth may start to moderate in the second half of this year towards 6.90 per cent due to rising oil prices, tighter financial conditions and a likely slowdown in investment activity ahead of the national elections.

Rising oil prices are changing the macro dynamics and may put pressure on inflation.

With a 13 per cent share, the textile sector is one of the major contributors to India’s export earnings.

However, the sector has been under pressure of late. While, apparel exports have grown at a subdued pace due to intense competitive pressures, yarn exports have also remained under pressure given the decline in demand from China as well as the country’s losing share in the Chinese yarn market.

Adequate budgetary allocation for schemes such as refund of state levies and interest subvention benefits can help improve the competitiveness of textile exporters and improve textile export growth.