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India expected to grow by 7.25%: OECD Report

13/11/2015


India expected to grow by 7.25%: OECD Report

The Organisation for Economic Cooperation and Development (OECD) released its report on India ‘India-Economic Forecast’ on November 9, 2015.


As per the report the Indian economy is expected to grow at 7.25% in the fiscal year 2015-16 and is expected to grow by 7.3 % in 2016-17 and 7.4% in 2017-18. The report states, that public investment has grown in India as getting clearances has got easy. The report also pointed to the improvement in infrastructure and greater ease in doing business have boosted private investment and boost in public consumption can also be noticed in the economy. The OECD report also states that large non-performing loans and difficulty in passing important structural reforms are having a negative impact on the economy.

The current account deficit is also increasing due to growing import of machinery but, the gap is supposed to be filled by foreign direct investment (FDI) inflows in the economy. The report calls for higher public investments in social sectors as housing, energy, and transport services is required for raising the living standards in the country as a whole. The report also called for cutting in subsidies given by the government especially in coal, kerosene and petroleum products which have the potential to hurt the lower rung of the economic strata.

On the positive side the report notes that Indian economy’s external vulnerability has declined over all and inflation level has also fallen, while on the other hand investments and exports have experienced a slowdown. The debt status of the economy is more or less stable.

(prepsure.com)

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