According to a UN report, India’s economy is “slowly gaining momentum” and is projected to grow by 7.3 per cent in 2017.
- According to the United Nations Economic and Social Commission for Asia and the Pacific’s (ESCAP) year-end Report ‘Economic and Social Survey of Asia and the Pacific 2016’, which was released on December 1, 2016, India’s, economic growth is expected to remain at 7.6 per cent in both fiscal years 2016-17 and 2017-18.
Key points of report
India’s economic growth is expected to remain at 7.6 per cent in 2017 as investment regains momentum and the manufacturing base strengthens on the back of structural reforms.
- The ongoing structural reforms are also expected to benefit private investment in India.
- Initially growth will be as a result of rebound in agriculture due to normal monsoon rain, Goods and Services Tax regime and also the 7th pay commission will support the broad-based consumption growth.
- Later the growth will be due to the recovery in private investment.The economic growth rate of China is projected to be 6.4 percent in 2017 because there will be further progress in rebalancing towards consumption, services and higher value added activities.
- India and China were credited as being the anchors of a high and steady growth of the Asia-Pacific region at a time when developed economies were struggling to sustain high growth rates.
- Fiscal institutions are being improved, with China moving away from off-budget spending and implicit guarantees and India taking a major step towards putting into effect a nationwide goods and services tax.
- Stable economic conditions in the second half of 2016 provide an opportunity to internalize the economic, social, environmental and governance dimensions of sustainable development in a comprehensive manner.
- Flexible domestic demand and policy support have resulted in the growth of developing economies at a steady pace of just below five per cent despite slow pace global economy and weak trade growth.
About The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)
The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) is the regional development arm of the United Nations for the Asia-Pacific region.
Established in 1947 with its headquarters in Bangkok, Thailand, ESCAP works to overcome some of the region’s greatest challenges by providing results oriented projects, technical assistance and capacity building to member States in the following areas:
i.Macroeconomic Policy, Poverty Reduction and Financing for Development
ii.Trade and Investment
iv.Environment and Development
v.Information and Communications Technology and Disaster Risk Reduction
viii.Subregional activities for development