Indian Economy to outrace People's Republic of China: ADB report
Published on March 24, 2015 16:14:33 PM
The latest report of Asian Development Bank (ADB) envisages the significant growth of Indian economy in 2015 with the advancements in government’s structural reforms and improved external demand that boosts the investor confidence.
Asian Development Outlook 2015 (ADO), predicts India's gross domestic product (GDP)will become by 7.8% in the financial year closure March 2016 (FY2015), and growth momentum to build to 8.2% in FY2016.
Chief Economist of ADB, Shang-Jin Wei forecasts India’s economy to grow more rapidly than the People’s Republic of China in the coming years.
The pro-investment attitude of the government, improvements in the fiscal and current account deficits, and some forward movement on resolving structural bottlenecks have helped to enhance the business atmosphere and make India appealing to both domestic and foreign investors, says Shang-Jin Wei.
He further adds, India's economic prospects look encouraging yet there are still numerous difficulties.
Recent measures include easing the process of land acquisition for infrastructure and industrial corridors, accelerating environment clearances for infrastructure projects, easing the compliance, burden of labor laws on small and medium-sized industries, and allowing auction of coal mines to the private sector.
The primary objective of the new monetary policy is to maintain price stability, which helps to restrain inflation and improves co-ordination between monetary and fiscal policy.
To fully reap the benefits of urbanization, the government must make further efforts to coordinate urban and industry planning to attract industries into cities, and provide the necessary supporting infrastructure.
Report also states that, Indian government should take additional steps to attract industries into cities and help them with necessary infrastructure.