Diplomacyindia.com

India set to grow at 6.4 percent in 2015 : IMF

India set to grow at 6.4 percent in 2015 : IMF
October 10
18:31 2014

Washington, Oct 10 India is projected to grow at 6.4 percent in 2015 with industrial production and other indicators turning around thanks to stronger business confidence since the parliamentary elections, according to the International Monetary Fund.

“India’s growth outlook has improved since the last national election, helped by lower uncertainty and improved business confidence,” the 188-nation watchdog of global economic health said in its October 2014 Update of Asia and Pacific Economic Outlook.

Despite a weaker-than-expected first half of the year, the outlook for the region remains solid, it said with GDP forecast to grow by 5.5 percent for the third consecutive year in 2014, rising slightly to 5.6 percent in 2015.

“In India, growth (based on GDP at factor cost) has gathered steam as industrial production and other high-frequency indicators have started to turn around on the back of stronger business confidence” since the last national elections, IMF said.

These developments have been accompanied by rising capital inflows as well as a revival in investment and industrial activity, it noted.

“India’s GDP growth appears to have bottomed out,” IMF said, forecasting its “rise to 5.6 percent in 2014, accelerating further to 6.4 percent in 2015, despite headwinds from ongoing fiscal consolidation and a tighter monetary stance”.

But “India’s high and persistent inflation remains a policy concern and is projected to decline only gradually, reaching 7.8 and 7.5 percent in fiscal years 2014 and 2015, respectively,” IMF said.

Economic resilience to global financial risks has increased in the region, especially in India, where policy actions to reduce vulnerabilities have helped lower external and domestic imbalances, it said.

In India, for instance, international reserves have risen and the current account deficit has been slashed, contributing to a significant reduction in gross external financing needs, the regional update said.

Suggesting that reforms to maintain high and sustainable growth will also help lower near-term vulnerabilities, IMF advocated stronger investment and efficiency in India as important steps in this direction.

In the case of India, previous interest rate hikes and other policy measures are helping contain price pressures, and the full effect of past monetary tightening is yet to be felt, the update said.

“However, close vigilance is warranted, particularly in the event of large cost-push shocks or if there is evidence that inflation expectations become unmoored,” it said.

“India also needs to further remove structural impediments to investment, including by further liberalizing its FDI regime and labour market regulations,” IMF said.

“Energy sector policies are also needed in India to boost industrial activity,” it said.

The update said the ongoing global recovery, while tepid, should support Asia’s exports. “Meanwhile, favourable financial and labour market conditions, as well as broadly accommodative policies, will continue to underpin domestic demand” in the region.

“Policymakers in the region should capitalise on the outlook to gradually rebuild policy space and push ahead with structural reforms to deliver sustainable growth,” the IMF suggested.

About Author

admin

admin

Related Articles

Dr Meena Singh Roy speaking on Uzbekistan Constitutional Reform Referendum 2023

On the Eve of 30th Years of Independence of Republic of Uzbekistan, H.E. Dilshod Akhatov, Ambassador of Uzbekistan to India in conversation with Ameya Sathaye, Editor-in-Chief.

Denmark Ambassador to India Freddy Svane in conversation with Amb Pradeep Kapur & Ameya Sathaye, Editor-in-Chief

Italy india will work closely together for G20 : Italy Envoy to India

Do you know why FINLAND is ranked number ONE in Happiness index, watch this interview with Finland Ambassador to India

Exclusive Interview : H.E. Jasem Ibrahem Al Najem Ambassador of Kuwait to India speaks on India Kuwait bilateral relations

ड्रैगन ने हाथी को क्यों डसा, भारत- चीन रिश्तों की कहानी- रंजीत कुमार के साथ अमेय साठे की विषेष चर्चा ड्रैगन ने हाथी को क्यों डसा, भारत- चीन रिश्तों की कहानी- रंजीत कुमार के साथ अमेय साठे की विषेष चर्चा 0 comment Read Full Article

H.E. Reuben Gauci, Ambassador of Malta to India speaks on India-Malta Bilateral Relations

Portugal supports India in covid crisis : Portugal Ambassador Carlos Pereira Marques speaks with Ameya Sathaye, Editor-in-Chief

Vietnam Ambassador to India, Pham Sanh Chau speaks on Vietnam support to India in tackling covid crisis

Netherlands supports India in covid crisis : Netherlands Ambassador Marten van den Berg speaks with Ameya Sathaye

Envoy Speaks : Gopal Baglay, Indian High Commissioner to Sri Lanka speaks on Bilateral relations, business opportunities, Tourism & people to people to people contacts

Kuwait reciprocates, we stand with India in this hour of crisis : Kuwait Ambassador to India

Canadian High Commissioner, Nadir Patel speaking on support to India in covid crisis

Italian Ambassador to India, Vincenzo de Luca speaking on Italy support to India in covid crisis

H.E. Mr. Reuben Gauci, Malta High Commissioner to India speaks with Ameya Sathaye, Editor-in-Chief of Malta support to India in covid crisis

Danish Ambassador to India Freddy Svane speaking on Denmark aid to India

Video Interview with Vinod Daniel, CEO, India Vision Institute, Board Member, International Council of Museums & Chairman, Ausheritage

DENMARK AMBASSADOR FREDDY SAVNE VISIT TO CORONOVIRUS VACCINE FACILITY AT HYDERABAD, A TRIP ORGANISED BY MINISTRY OF EXTERNAL AFFAIRS, GOVT OF INDIA FOR FOREIGN ENVOYS BASED IN INDIA.

MALTA HIGH COMMISSIONER TO INDIA, H.E. REUBEN GAUCI SHARING HIS IMPRESSION ABOUT HIS VISIT TO HYDERABAD : TRIP ORGANISED BY MINISTRY OF EXTERNAL AFFAIRS, GOVERNMENT OF INDIA FOR ENVOYS BASED IN INDIA TO UPDATE ON CORONAVIRUS VACCINE

H.E. Mr. Dinesh Bhatia, Ambassador of India to Argentina in conversation with Ameya Sathaye, Editor-in-Chief

Pictures of Formal Launch of Website Diplomacyindia.com

Exclusive Interview with Prime Minister of Guyana, H.E. Mr. Moses Veerasammy Nagamootoo during his recent visit to India.Highlights of the interview were Indian Cultural Connect, Vibrant Bilateral Ties and Cultural Connect and India’s Economic Prowess.

Video Message from Shri Prakash Javadekar, MoS (IC) for Forest, Environment & Climate Change on eve of Formal Launch of Website Diplomacyindia.com

Message from Gen. V K Singh, (Retd.) Hon’ble MoS, External Affairs to Diplomacyindia.com