India’s economy to grow 5.5% this fiscal: Government

India’s economy is expected to expand 5.5% in the current fiscal year through March, the finance ministry said in a report Friday.

The projected growth rate is at the lower end of the 5.4% to 5.9% band forecast by the government during the annual budget in July and reflects a modest recovery from the below-5% expansion in the past two years.

Indian executives and economists have been optimistic that the south Asian economy will recover this year as the country’s new government hastens long-delayed policy changes to boost business and restore investor confidence.

Prime Minister Narendra Modi ’s government has taken a number of steps, which have helped initiate an early recovery. But the lack of bold policy moves has disappointed analysts, prompting many to temper their expectations.

Data issued late November showed growth in gross domestic product slowed to 5.3% in the three months ended Sept. 30, from 5.7% in the previous quarter, stoking concerns that the recovery may already be losing steam.

Earlier this week, the Asian Development Bank also forecast India’s economy would expand 5.5% this fiscal year.