Indian economy on a sound footing

 Niti Kiran        Last Updated: April 20, 2017  | 18:16 IST
Indian economy on a sound footing

The Indian economy appears to be well placed if global and Indian agencies are to be believed. It is estimated that the Indian economy is poised to grow at over 7 per cent in the near future.

The World Bank expects India's growth to spike to 7.2 per cent in the financial year 2017/18 from 6.8 per cent the previous fiscal. The international agency forecast that India's economic growth will rise gradually to 7.7 per cent in 2019/20, "underpinned by a recovery in private investments. A "timely and smooth implementation of the GST could prove to be a significant upside risk to economic activity in FY17/18", the World Bank said in a report. It has however warned against significant risks to India's favourable growth outlook.  

The Asia Development Outlook 2017 report too is upbeat about India and predicts a GDP of 7.4 per in 2016/17 and 7.6 per cent in 2017/18. The International Monetary Fund (IMF) recently trimmed India's 2017 GDP growth forecast by 0.4 percentage points but it still expects a healthy 7.2 per cent. The lower estimate was primarily because of temporary negative consumption shock induced by cash shortages and payment disruptions from the recent demonetisation drive.

In February, the Central Statistics Office estimated country's GDP also estimated economic growth at over 7 per cent (7.1) in 2016/17 even though it's a correction from the growth of 7.9 per cent recorded 2015/16. A normal monsoon, as forecast by the India Meteorological Department (IMD), would further boost growth.

Indeed, India appears poised to remain the fastest growing major economy for a while, outstripping China.   

 

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