Modi mania: India’s economic growth outlook upgraded by Fitch
03/07/2014 13:20
Leading rating agency Fitch Ratings has upgraded its growth estimate for the Indian economy as the return to power for the more growth, investor and reform friendly BJP government augers well for the outlook for Asia’s third biggest economy, which has been stuck below the 5 per cent expansion mark for the past two fiscals.
Fitch expects the Indian economy to grow by 5.5 per cent in FY 2014-15.
In FY 2015-16, the country’s economic growth may accelerate to 6.5 per cent.
In FY 2013-14, the Indian economy grew by only 4.7 per cent, the second straight year when growth lagged 5 per cent.
"The clear electoral mandate of the BJP-led government gives it the ability to pursue far-reaching economic reforms...we have increased our GDP growth forecast for FY16 to 6.5 per cent from 6 per cent and project real GDP growth to pick up to 5.5 per cent in FY15”, Fitch said, according to a PTI report.
All eyes are on the Union Budget 2014-15 which will be unveiled by the new government on July 10 where Finance Minister Arun Jaitley may announce some key reform measures to accelerate growth, along with fiscal consolidation efforts.
The budget may include reforms such as a timeline to implement GST, liberalization of FDI in sectors such as defence and e-commerce, asset sales by the government, and trimming of subsidies.
03/07/2014 13:20
Leading rating agency Fitch Ratings has upgraded its growth estimate for the Indian economy as the return to power for the more growth, investor and reform friendly BJP government augers well for the outlook for Asia’s third biggest economy, which has been stuck below the 5 per cent expansion mark for the past two fiscals.
Fitch expects the Indian economy to grow by 5.5 per cent in FY 2014-15.
In FY 2015-16, the country’s economic growth may accelerate to 6.5 per cent.
In FY 2013-14, the Indian economy grew by only 4.7 per cent, the second straight year when growth lagged 5 per cent.
"The clear electoral mandate of the BJP-led government gives it the ability to pursue far-reaching economic reforms...we have increased our GDP growth forecast for FY16 to 6.5 per cent from 6 per cent and project real GDP growth to pick up to 5.5 per cent in FY15”, Fitch said, according to a PTI report.
All eyes are on the Union Budget 2014-15 which will be unveiled by the new government on July 10 where Finance Minister Arun Jaitley may announce some key reform measures to accelerate growth, along with fiscal consolidation efforts.
The budget may include reforms such as a timeline to implement GST, liberalization of FDI in sectors such as defence and e-commerce, asset sales by the government, and trimming of subsidies.
