Global Financial Services Giant Barclays has said that it has sustained its India growth forecast of 7.8 per cent for 2015-16 as strong rise in central government spending is expected to boost expansion in the coming months, media reported.
Commenting on the issue, the Financial Services Major said, "The GDP growth is likely to strengthen, largely driven by an uptick in public spending. Moreover, consumption trends are also expected to remain "generally supportive."
"Despite a softer-than-expected growth in the latest GDP print, we maintain our FY15-16 GDP growth forecast of 7.8 per cent. The strong rise in central government spending should help GDP growth to accelerate in second quarter of fiscal year 2015-16," it added.
The Financial Services major further added that India's fiscal situation was showing signs of improved health. The country's fiscal policy was turning distinctly more growth supportive and was leading a revival in capex cycle.