According to the UN Economic and Social Survey for Asia and the Pacific 2016 report, the Indian economy is projected to expand by 7.6% in 2016-17 and grow to 7.8% in 2017-18.
The United Nations Economic and Social Survey for Asia and the Pacific-2016 report, recently released says that cautious macro-economic policy, reduced inflation, and structural reforms have helped India to perform well in an environment of global economic slowdown. The growth is mainly on the back of domestic consumption demand aided by steady employment and a relatively low inflation.
UN official Sebastian Vergara said India’s macroeconomic policy in recent years has been cautious, that has been a positive development to provide a good framework to increase the sentiment of consumers, and the monetary policy has also played an important role in reducing inflation. "The macro-economic policy in recent years has been cautious, especially in the fiscal side. This has been a positive development to provide a good framework to increase the sentiment of consumers," Vergara said. He also adds that monetary policy has also played an "important role" in reducing inflation in recent years. However, he cautions that there are still some areas where structural reforms are seeing slow progress.
The report also adds that in South and South-West Asia, India’s economy is gradually gaining growth momentum "amid making steady, albeit uneven, progress" on policy reforms to attract foreign investment and revive stalled infrastructure projects
The report projected that inflation is expected to remain low in India at around 5.5% for the perion 2016-18.