Yes Bank forecasts India's GDP to cross 8% in FY17

India's economy is projected to stand closer to 8.1% in the fiscal year 2016-17 (FY17), Yes Bank said in its latest press release. 

“For FY17, we thus foresee an upside to our earlier 7.8% year-on-year GDP estimate. We think that GDP growth in FY17 could stand closer to 8.1% year-on-year (YoY),” Yes Bank said.

The bank has said the country's gross domestic product (GDP) is estimated to witness this growth on the back of increase in consumption demand for cement, oil, electricity and stronger corporate earnings for the fourth quarter (Q4) of FY 16. 

The fifth largest private sector bank in the country had earlier estimated the economy to grow 7.8% year-on-year (YoY). 

Yes Bank has revised its outlook for the economy stating a surplus monsoon outurn is likely to support agriculture output and rural demand to a greater extent. 

It noted that a rise in consumption will also take place with an anticipation that the government will revise wages for its employees which will result in economic growth.

The new BJP-led government has introduced several business friendly reforms such as 'Make in India', 'Startup India', etc., to boost investment in the country. 

The economy will also grow on increase in investment by the end of the year, Yes Bank said.