The International Monetary Fund has said the Indian economy is growing strongly and remains a bright spot in the global landscape. It said growth is expected at 6.6 percent in this fiscal year and at 7.2 percent in the following year.
“The Indian economy is growing strongly and remains a bright spot in the global landscape,” the IMF mission chief for India, Paul Cashin said. He said the halving of global oil prices that began in late 2014 boosted economic activity in India, further improved the external current account and fiscal positions, and helped lower inflation.
In addition, continued fiscal consolidation, by reducing government deficits and debt accumulation, and an anti-inflationary monetary policy stance have helped cement macroeconomic stability, he added.
Noting that the government has made significant progress on important economic reforms, which will support strong and sustainable growth going forward, he said the upcoming implementation of the goods and services tax (GST) will help raise India’s medium-term growth to above eight per cent.
GST will enhance the efficiency of production and movement of goods and services across Indian states, he said.
FDI Inflow Grew by 8%
Foreign direct investment (FDI) grows up by 18 percent in India to touch 46 million USD data; services, telecom, trading, computer hardware and automobile sector attract highest foreign inflows.
The recent steps announced by the government to attract foreign inflows, are yielding positive results. According to data released by the Department of Industrial Policy and Promotion, the Foreign direct investment in India grew 18 per cent during 2016 to touch USD 46 billion. The country attracted FDI of USD 39.32 billion in 2015.
The data further showed that the main sectors which attracted the highest foreign inflows include services, telecom, trading, computer hardware and software and automobile. While, Bulk of the FDI came in from Singapore, Mauritius, the Netherlands and Japan.