MUMBAI (Commoditiescontrol) – The United Nations believes that the ongoing structural reforms in India will lead the economy to grow at 7.6 per cent in 2017. This growth will be backed by regain in investment momentum and strengthening of manufacturing base due to reforms in the country. It has credited India and China for steady growth of the Asia-Pacific region.
According to the year-end update of Economic and Social Survey for Asia and the Pacific 2016 report of the United Nations Economic, India's economy is projected to sustain a 7.6 per cent growth rate in both fiscal years 2016-17 and 2017-18. The ongoing structural reforms are also expected to benefit private investment in India.
The UN, however, acknowledged that the growth in Q1 of 2016-17 moderated due to a contraction in fixed investment, a rebound is expected. It 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. Further, the growth will be supported by a recovery in private investment as the recent push to accelerate infrastructure spending and measures to create a better investment climate, partly due to the passage of the GST and bankruptcy code.
In the same vein, the UN projected China’s growth to ease slightly to 6.4 per cent in 2017 as rebalancing towards consumption, services and higher value-added activities makes further progress. The report added that fiscal institutions are being improved, with China moving away from off-budget spending and implicit guarantees and India taking a major step towards putting into effect a nationwide GST.
(By Commoditiescontrol Bureau; +91-22-40015522)
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