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India to grow 7.5% in 2016-17, says an IMF survey

India to grow 75percent in 2016 17 says an IMF survey pardesi news 1463405713

The International Monetary Fund says India remains the fastest-growing large economy in the world, with GDP expected to increase by around 7.5% percent in 2016 and 2017.

According to a very recent International Monetary Fund (IMF) survey "India has benefited from lower oil prices and remains the fastest-growing large economy in the world, with GDP expected to increase by 7.5 % in 2016 and 2017 also”.

This impending recovery of private investment is expected to help broaden this recovery from 7.3% in 2015 to 7.5%. Never the less the higher levels of public infrastructure investment and government measures to enhance the investment projects should help crowd-in private investment.

India has benefited from lower oil prices and remains ahead, and though external demand remains sluggish, domestic demand continues to show resilience across most of the region driven, by low unemployment, growth in disposable income, lower commodities prices, and macroeconomic stimulus.

The IMF report also divulged that the quality of public spending had improved, and that tax revenues could be further increased through better administration of India’s large food and fertilizer subsidies. It also encouraged the introduction of the long-planned goods and services tax, which would make transportation of goods and services across the country more efficient and create a single national market.

Broadly speaking according to IMF Resident Representative Thomas Richardson, “India's growth trajectory is pretty strong by international standards — not to mention the advanced economies”. 

Overall, the IMF report has projected a mixed outlook for the region and despite being Asia’s largest economies; however China and Japan will continue to face challenges.

About the author

Patrick Callahan

Pardesi News Reporter

Pardesi News Reporter

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