AFP, New Delhi :
India’s economy will sustain growth of over 7 percent in the next financial year, an official report said Friday, as the government gears up to present its budget with clamour for promised reforms growing.
The Economic Survey, an annual report compiled by the finance ministry ahead of the budget on Monday, said gross domestic product (GDP) would expand between seven percent and 7.75 percent in 2016-17.
The relatively upbeat prediction comes despite a weak global economy, with a slowdown in China that has worried investors and other major emerging markets in recession.
India’s GDP likely grew 7.6 percent over the 2015-16 financial year, the government said, making it the world’s fastest-growing major economy.
However, Friday’s forecast represents a paring down of expectations from last year’s survey which predicted growth would top eight percent this year and hit double digits in the medium term.
“Though the emerging market economies have clearly slowed down, the Indian economy stands out as a haven of macroeconomic stability, resilience and optimism,” the finance ministry said in a statement.
India’s services sector remains one of the main engines of growth, expanding more than nine percent in the current fiscal year, the Economic Survey said, despite a massive drive to boost manufacturing.
Prime Minister Narendra Modi has made it a priority to boost India’s economic growth, vital for lifting millions out of poverty, since sweeping to power in a general election in May 2014.
But investors have raised concerns about the pace of promised reforms needed to create jobs for India’s tens of millions of young people.
And while its growth has outpaced that of powerhouse China in recent quarters, Asia’s third-largest economy still faces challenges.
After cooling from previously high levels, India’s once exorbitant inflation has ticked up again over the past few months, with prices rising 5.7 percent in January.
India’s main stocks index has lost a fifth of its value over the past year, private investment is weak and the rupee is trading at near-record lows against the dollar.
Investors will be looking to Monday’s budget for concrete reforms from the business-friendly government.
India’s economy will sustain growth of over 7 percent in the next financial year, an official report said Friday, as the government gears up to present its budget with clamour for promised reforms growing.
The Economic Survey, an annual report compiled by the finance ministry ahead of the budget on Monday, said gross domestic product (GDP) would expand between seven percent and 7.75 percent in 2016-17.
The relatively upbeat prediction comes despite a weak global economy, with a slowdown in China that has worried investors and other major emerging markets in recession.
India’s GDP likely grew 7.6 percent over the 2015-16 financial year, the government said, making it the world’s fastest-growing major economy.
However, Friday’s forecast represents a paring down of expectations from last year’s survey which predicted growth would top eight percent this year and hit double digits in the medium term.
“Though the emerging market economies have clearly slowed down, the Indian economy stands out as a haven of macroeconomic stability, resilience and optimism,” the finance ministry said in a statement.
India’s services sector remains one of the main engines of growth, expanding more than nine percent in the current fiscal year, the Economic Survey said, despite a massive drive to boost manufacturing.
Prime Minister Narendra Modi has made it a priority to boost India’s economic growth, vital for lifting millions out of poverty, since sweeping to power in a general election in May 2014.
But investors have raised concerns about the pace of promised reforms needed to create jobs for India’s tens of millions of young people.
And while its growth has outpaced that of powerhouse China in recent quarters, Asia’s third-largest economy still faces challenges.
After cooling from previously high levels, India’s once exorbitant inflation has ticked up again over the past few months, with prices rising 5.7 percent in January.
India’s main stocks index has lost a fifth of its value over the past year, private investment is weak and the rupee is trading at near-record lows against the dollar.
Investors will be looking to Monday’s budget for concrete reforms from the business-friendly government.
