Despite delays in policy reforms in India, the economy of the country would grow in 2016 by 7.3 percent suggested United Nation’s report on Thursday.
The updated report of the World Economic Situation and Prospect forecasted that in 2016 India is expected to achieve a 7.3 percent GDP growth that would increase up to 7.5 percent in 2017.
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, written in the report.
China, which grew at about 6.9 per cent in 2015, will continue to witness slowdown in growth; with its GDP projected to grow 6.4 per cent in 2016 and 6.5 per cent in 2017, cited the same report.
The report was produced jointly by the UN Department of Economic and Social Affairs (UNDESA) and the UN Conference on Trade and Development (UNCTAD). The growth estimated for India, in the report was based on the mid-year update are in line with projections made in January this year.
This is to mention that India's economy, which accounts for over 70 per cent of South Asia's GDP, had grown by about 7.2 per cent in 2015.