India likely to clock 6.9% GDP growth this fiscal – BMI Research

According to a report by BMI Research, Indian economy is expected to clock a real Gross Domestic Product (GDP) growth of 6.9% in this financial year. 

Highlights of Report by BMI Research:

According to a report by BMI Research, India’s growth is expected to pick up in coming quarters by overriding the negative effects from the demonetisation drive in November 2016.

• The report noted that the negative effects from demonetisation is already wearing off, and the Indian economy is likely benefit from positive demographic trends, greater external stability (due to improved terms of trade from low oil prices), and continued reforms.
• However it noted that public banking sector is still weak on account of mounting non-performing assets and it is likely to cap the recovery.
• Elaborating this situation, the report mentioned that despite Reserve Bank of India’s efforts to clean up these bad loans, it will still weigh on the economy for some more time and will thereby negatively affect credit allocation to the productive sectors.
• The report outlined that Real GDP growth slowed substantially to 6.1% year-on-year in the fourth quarter of 2016-17.
• Owing to structural slowdown in China, poor policy mix in Japan, and policy uncertainty in South Korea, the report has forecasted slow economic growth in North Asia over the course of 2017 and 2018.
• The report expressed optimism that ASEAN and India will continue to be the bright spots in the region due to positive demographics and improvements in their business environments.

About BMI Research:

BMI Researchis a research firm that provides macroeconomic, industry and financial market analysis covering global markets.

• It was founded by Richard Londesborough and Jonathan Ferozein in 1984 as Business Monitor International.
• In 2014 it was acquired by Fitch Group.
• Headquarters of BMI Research is located in London, UK.
• Terence Alexander is the current Managing Director of BMI Research.