According to a recent report by the Asian Development Bank (ADB), the Indian economy may grow by 7.4 pc in the current fiscal period and by 7.8 pc in 2017, despite the challenges.
The Indian economy accelerated with a growth of 7.6 pc in 2015-2016 to break its own record of being a 2 trillion dollars economy. In spite of facing various challenges, the country’s economy is expected to grow further by 7.4 pc in the current fiscal and by 7.8 in 2017.
The Asian Development Bank (ADB) is a regional development organisation based in Asia that is dedicated to reducing poverty in Asia and the Pacific.
Ideal monsoon that will expectedly lead to a growth in rural demand and increased government pays are expected to uplift the domestic demand, thus encouraging economic growth in the nation.
Along with this, the liberalisations in Foreign Direct Investment (FDI) and the revised bankruptcy rules may bring more business opportunities for the country.
Progressing despite the challenges
Though India faces various challenges including a fragile rural economy, lack in private investments and delicate international circumstances that could affect demand, the economy is projected to escalate undeterred by the hindrances.
Even after the reduced industrial output, manufacturing sector in the country witnessed strong expansion at the beginning of the year with growing opportunities that came in with multiple fresh contracts.
According to ADB, growth in Asia and the Pacific’s developing economies for 2016 and 2017 may remain strong as the firm performances from South Asia, East Asia and Southeast Asia help offset softness from the US economy.
Britain’s exit from the European Union was seen as a jolt of thunder for the Indian economy because nearly 13 pc of India’s total trading is with Europe and approximately 800 Indian companies are operating in the UK. Though Brexit has affected Asian currency and stock markets, but its impact on the economy is expected to remain small.