New Delhi: On the heels of the Narendra Modi-led government at the Centre completing two years of its formation comes a bit of news that could help its lieutenants buttress its claims of economic development more strongly.
The Indian economy is doing well despite various problems and bad weather conditions that impacted agriculture. Several remarks have come at the BJP-led NDA government marks two years in office, with an industry chamber described it as ‘work in progress’ but saying that ‘a lot more is required’ to be done on the issue of tax disputes, while concerns remain on the huge bad loans incurred by the banking system.
In the latest in the series is a report by the UN which states that India's economy is 'slowly gaining momentum' and is projected to grow by 7.3 per cent this year.
However, The World Economic Situation and Prospect report, in its mid-2016 update, said India is expected to achieve a 7.5 per cent GDP growth in 2017 and the economic prospects of the South Asian region will be "contingent" on the growth trajectory of India and Iran.
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“India's economy is slowly gaining momentum, with an expected GDP growth of 7.3 and 7.5 per cent in 2016 and 2017, respectively. Despite some delays in domestic policy reforms and enduring fragilities in the banking system, investment demand is supported by the monetary easing cycle, rising FDI, and government efforts towards infrastructure investments and public-private partnerships," the UN report, released here said.
“A larger-than-expected slowdown in China would have widespread spillover effects through trade, financial and commodity markets, while a further deterioration of commodity prices could trigger debt crises in certain commodity- dependent economies," said the report,produced jointly by the UN Department of Economic and Social Affairs (UNDESA) and the UN Conference on Trade and Development (UNCTAD).
Prime Minister Narendra Modi has repeatedly said that all possible efforts were being made to achieve higher growth rate in all sectors and that the India's economy was a bright spot in the world due to his government's good policies and not good fortune.
The Prime Minister has also expressed confidence that despite adverse situations, his government would be able to achieve the desired results.
