Indian economy to grow by 7.3% |
Notwithstanding delays in domestic policy reforms, India’s economy is “slowly gaining momentum” and is projected to grow by 7.3% this year, a UN report forecast.The World Economic Situation and Prospect report, in its mid-2016 update, said India is expected to achieve a 7.5 % GDP growth in 2017 and the economic prospects of the South Asian region will be “contingent” on the growth trajectory of India and Iran. India’s economy is slowly gaining momentum, with an expected GDP growth of 7.3 and 7.5% in 2016 and 2017, respectively. 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, the report added. China, which grew at about 6.9% in 2015, will continue to witness slowdown in growth, with its GDP projected to grow 6.4% in 2016 and 6.5% in 2017.A larger-than-expected slowdown in China would have widespread spillover effects through trade, financial and commodity markets, while a further deterioration of commodity prices could trigger debt crises in certain commodity- dependent economies, said the report, produced jointly by the UN Department of Economic and Social Affairs (UNDESA) and the UN Conference on Trade and Development (UNCTAD).
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