Current Affairs PDF

OECD: India to grow at 7.2% in FY-16

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

As per interim economic outlook report of Paris based Think Tank Organisation for Economic Cooperation and Development (OECD), the Indian economy is expected to grow by 7.2% this fiscal.

  • It will be followed by 7.3% in 2016-17 and 7.4% in 2017-18 periods.
  • The latest figures are slightly lower than the projection of 7.3% in 2015-16 and 7.4 % growth in 2016-17 made by OECD in June 2015.

OECD - India to grow at 7.2 percent in FY-16Reasons behind India’s robust economic growth projection
Despite of large non-performing loans, high leverage ratios for some companies and difficulty in passing key structural reforms, it is largely financed by rising foreign direct investment inflows.

  • Public investment has picked up with faster clearance of key projects.
  • Better infrastructure and greater ease of doing business are promoting private investments.
  • Generous benefits and wages for public employees are supporting private consumption.

Caution for India
OECD cautioned that India may face difficulty in passing key structural reforms and large non-performing loans which are pulling it back.

Global Forecast

  • OECD has cut the global growth forecast for this year to 9%.
  • It has projected a strengthening of global growth to 3% in 2016 and 3.6% in 2017.
  • Brazil and Russia have experienced recessions and will not return to positive growth in annual terms until 2017.

About OECD
The Organisation for Economic Co-operation and Development (OECD) is an international economic organisation of 34 countries to stimulate economic progress and world trade.

  • It was established as Organisation for European Economic Co-operation (OEEC) in 1948 but reformed as OECD in 1961.
  • Headquarter – Paris, France