India, The Rising Star: Economy Likely to Grow 6.4% In 2015

Since taking charge of India, the Modi govt has unveiled several policy changes such as deregulating diesel prices, linking gas prices to global benchmarks, amendments to labor policies, steps to end the ‘inspector raj’ and cutting red tape for businesses. It’s expected to unveil further reforms in the months ahead.

According to the latest report released by the Organization for Economic Cooperation and Development (OECD), India’s economy will start picking up from next year onwards…

Growth Forecast

• The Indian economy will expand at 6.4 per cent next year compared to 5.9 per cent estimated less than two months back in its September 2014 interim outlook.


• According to OECD, the country could be within striking distance of China by 2016 in terms of the pace of growth with that country, expected to slow down in the years ahead.


• India’s growth is projected to rise to 6.6 per cent in 2016 while China will slow to 6.9 per cent by that year.


• The outlook also projects inflation to head lower.

What About Global Economy

• The organization projects that the global economy will expand 3.3 per cent in 2014, and recover gradually to 3.7 per cent in 2015, and 3.9 per cent in 2016.


• Among the major advanced economies, recovery remains robust in the United States, which is projected to grow by 2.2 per cent in 2014 and around 3 per cent in 2015 and 2016.


• Growth in the euro area is expected to pick up slowly, from 0.8 per cent in 2014 to 1.1 percent in 2015 and 1.7 per cent in 2016.


• Similarly, in Japan, growth will continue to be impacted by consumption tax hikes, and is expected to be 0.9 per cent in 2014, 1.1 per cent in 2015 and 0.8 per cent in 2016.

India, The Rising Star

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India is the only economy where growth will occur exponentially because:

1. The Pace of reforms has picked up after Narendra Modi government assumed office in May 2014.


2. Investment will be the main growth engine.


3. Improved Business Sentiment on the rise, thanks to reduced political uncertainty.


4. DEREGULATION and government commitment to cut red tape will boost the growth.


5. INFLATION is expected to continue to drift down.

 

India, The Rising Star: Economy Likely to Grow 6.4% In 2015