NEW DELHI, May 14: The United Nations is upbeat about India’s growth and has said that India’s economy is slowly gaining momentum, with an expected GDP growth of 7.3 and 7.5 per cent in 2016 and 2017, respectively.
In a report prepared by UN Global Economic Monitoring Unit, Development Policy and Analysis Division, Department of Economic and Social Affairs (DESA),it is said that despite some delays in domestic policy reforms and enduring fragilities in the banking system, investment demand is supported by the monetary easing cycle, rising FDI, and Government efforts towards infrastructure investments and public-private partnerships in India is going to achieve a satisfactory growth rate.
Commenting on India’s prospect, the report says that inflation is projected to remain relatively tame, reflecting subdued commodity prices and lower pressures from supply-side bottlenecks. This has increased monetary policy space, with prospects for further easing in some economies. In contrast, fiscal policies remain tight or under consolidation in most countries.
About South Asia the report says, “Despite the protracted instabilities and general weakness of the global economy, South Asia’s economic outlook remains favourable, with most countries benefiting from low oil prices. Regional GDP growth is expected to accelerate from 6.1 per cent in 2015 to 6.6 and 6.8 per cent in 2016 and 2017, respectively, owing to robust private consumption, strengthening investment demand and gradual progress on domestic policy reforms.”
According to the report, South Asia’s regional prospects are contingent on robust growth in India and the recovery of the Islamic Republic of Iran. India’s economy is slowly gaining momentum, with an expected GDP growth of 7.3 and 7.5 per cent in 2016 and 2017, respectively. (UNI)
Follow our WhatsApp channel