{"id":114664,"date":"2016-03-30T22:24:42","date_gmt":"2016-03-30T22:24:42","guid":{"rendered":"http:\/\/151.106.38.4\/2016\/03\/30\/adb-lowers-indias-next-fiscal-growth-forecast-to-7-4\/"},"modified":"2016-03-30T22:24:42","modified_gmt":"2016-03-30T22:24:42","slug":"adb-lowers-indias-next-fiscal-growth-forecast-to-7-4","status":"publish","type":"post","link":"https:\/\/nagalandpost.net\/index.php\/2016\/03\/30\/adb-lowers-indias-next-fiscal-growth-forecast-to-7-4\/","title":{"rendered":"ADB lowers India\u2019s next fiscal growth forecast to 7.4%"},"content":{"rendered":"

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With the global slowdown continuing to weigh on India\u2019s exports, the Asian Development Bank (ADB) on Wednesday pegged downwards the country\u2019s growth rate for the next fiscal to 7.4 percent, from 7.6 percent this year, saying further reforms will help India remain one of the fastest growing economies in the world.<\/div>\n
\u201cIndia\u2019s economy will see a slight dip in growth in FY (fiscal year) 2016 (from April 1, 2016, to March 31, 2017). The economy will again accelerate in FY 2017 as the benefits of banking sector reforms and an expected pickup in private investment begin to flow,\u201d ADB said in a release in Hong Kong. ADB\u2019s growth forecast of 7.4 percent for 2016-17 is lower than its earlier projection of 7.8 percent.<\/div>\n
\u201cIn its latest Asian Development Outlook, ADB projects India\u2019s gross domestic product (GDP) to grow 7.4 percent in FY2016, slightly below the FY2015 estimate of 7.6 percent. In FY2017 growth is forecast to rise 7.8 percent,\u201d the statement added.<\/div>\n
ADB said the weak global economy will continue to weigh on exports in the next fiscal, offsetting a further pickup in domestic consumption, partly due to an impending salary hike for government employees.<\/div>\n
\u201cIndia is one of the fastest growing large economies in the world and will likely remain so in the near term,\u201d ADB\u2019s chief economist Shang-Jin Wei said.<\/div>\n
\u201cThe potential growth of the country can be raised further if it can successfully implement necessary reforms including unifying the tax regime, improving labour market regulations as opening further to foreign direct investment and trade,\u201d Wei added.<\/div>\n
The finance ministry\u2019s Economic Survey 2015-16 tabled in parliament last month has pegged India\u2019s growth for the next fiscal in the 7-7.75 percent range.<\/div>\n
ADB also said that after two years of decline, consumer inflation is likely to rise, fuelled by the salary hike for government employees and a mild pick-up in global oil prices. Inflation is expected to average 5.4 percent in next fiscal, rising to 5.8 percent in 2017-18.<\/div>\n
\u201cThe government is expected to maintain its ongoing fiscal consolidation efforts, with the deficit cut to 3.5 percent of GDP in FY2016, supported by tax revenue growth and asset sales,\u201d the multilateral lender said.<\/div>\n
ADB projected a recovery in India\u2019s exports during the 2017-18 fiscal as large economies show a mild growth rebound, and an improved business environment in the country with government policy actions in place.<\/div>\n
\u201cHowever, India still faces significant challenges to finance the infrastructure it needs to deliver sustainable growth, with funding requirements estimated at around $200 billion a year through FY2017,\u201d it said.<\/div>\n
State-run banks\u2019 non-performing assets (NPAs), or bad loans, and an over-leveraged corporate sector leave limited scope for more private investment in infrastructure and highlight the need for policy actions, the report added.<\/div>\n
However, ADB also said that public investment would remain strong in the next fiscal and stronger public sector banks will help bring an increase in bank credit and boost private spending in the 2017-18 fiscal.<\/div>\n
\n<\/div>\n","protected":false},"excerpt":{"rendered":"

With the global slowdown continuing to weigh on India\u2019s exports, the Asian Development Bank (ADB) on Wednesday pegged downwards the country\u2019s growth rate for the next fiscal to 7.4 percent, from 7.6 percent this year, saying further reforms will help India remain one of the fastest growing economies in the world. \u201cIndia\u2019s economy will see […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-114664","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/114664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/comments?post=114664"}],"version-history":[{"count":0,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/114664\/revisions"}],"wp:attachment":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media?parent=114664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/categories?post=114664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/tags?post=114664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}