According to a new report released by the United Nations, India’s economy is all set to grow by 7.6 percent in 2017. This will be a result of an increase in the investment regains and the strengthening of manufacturing bases. Also, the structural reforms taking place in India will be a lending hand to this growth. The report produced by the UN says India and China are the main reasons for growth in the Asia-Pacific region.
According to the year end update report of Economic and Social survey for Asia and Pacific regions, 2016, conducted by the United Nations Economic and Social Commission for Asia and Pacific (ESCAP) flagship, “The economy of India is projected to have a 7.6 percent growth rate in both fiscal years of 2016-17 and 2017-18.” This can be accredited to the change in structural changes in economy and business and trade happening in our country. The structural reforms are also predicted to benefit the private investments in our country and increase them in the fiscal year of 2016-17 and 2017-18. It also states that in the first quarter of the current fiscal year, that is April- June 2016, has been moderate as there has been a strain in the fixed investments, but a rebound is expected and an expansion will be seen in the fixed investments too.
The report said “Initially, growth will be driven by a rebound in agriculture due to normal monsoon rain, which along with civil service pay revisions will support broad-based consumption growth. Later, growth will be underpinned by a recovery in private investment as the recent push to accelerate infrastructure spending and measures to create a better investment climate – due in part to the passage of the goods and services tax and bankruptcy code.”
The report has also said that though the developed economies have been losing some of their recovery speed, the Asia-Pacific region’s high and a constant growth rate is due to the growth in the economy of India and China, and this has contributed to stabilizing the Global Economy.
