Backed by consumption demand and government spending, India’s gross domestic product (GDP) will grow by 7.4% in FY18 from 6.8% in FY17, India Ratings (Ind-Ra) said in its forecast on Tuesday. The gross value added of the three production sectors — namely, agriculture, industry and services —would grow at 3%, 6.1% and 9.1% y-o-y, respectively, in FY18, the rating agency said in its Macro Economic Outlook. While private final consumption expenditure is expected to grow at 8.9%, the government’s final consumption expenditure is expected to clock 9% growth in FY18, it said. Ind-Ra has revised down its GDP growth estimate for FY17 to 6.8% from 7.9%, which is lower than Central Statistical Organisation’s advanced estimate of 7.1%. On the Union Budget FY18’s fiscal deficit target of 3.2% of GDP, it said achieving the target looks plausible.