India on an upward trajectory, to grow at 7.3%: UN report

The Dollar Business

India is on an upward trajectory and will be the world’s fastest growing economy by 2017. This was the forecast report, released by the United Nations.

With the momentum gained by the Indian economy, the country is expected to grow at 7.3% in 2016 and further grow at 7.5% in 2017. The forecasts are slightly up from the estimated growth of 7.2% in 2015.

While stating that South Asia will be the fastest growing region in the world by 2017, the World Economic Situation and Prospects of 2016-2017 report added that India will retain its number as the fastest growing economy for some time.

The signs are all there. The macro-economic activities in India, backed by declining prices of food, metals and oils, have enhanced in the past two fiscals.

India contributes 70% in South Asia’s GDP. Meanwhile, investor and consumer ties were strengthened even as the government faced problems in the implementation of a wide-ranging reforms.

Citing private consumption as the driving engine of growth, the report claims that majority of the South Asian countries will see rapid growth, warding off sluggish exports and stern fiscal policies.

Well known economist Dr Nagesh Kumar, Head of South and South-West Asia Office of United Nations Economic and Social Commission for Asia and the Pacific, said that following the framework of fiscal policies can not only boost growth rates but also carve the way for future growth in the fields of infrastructure and education.

The fall in inflation in South Asia did not go unnoticed by the report. While stating that inflation rates plunged in India, Sri lanka and Pakistan, the report added that the upward price pressure will remain limited for a short duration.

According to the forecasts drawn in the report, for the first time since 2006, the GDP growth rate will rule above the average inflation rate of South Asia in 2016.

The world economy, with the support of lower restrictive nature of fiscal policies, is expected to grow by 2.9% in 2016 and by 3.2% in 2017, the report stated