Friday, 20 May 2016
Moody's pegs India's growth rate at 7.5% in 2016 & 2017
Projecting an economic growth rate of close to 7.5 percent in 2016 and 2017, Moody's Investors Service today said the prevailing low headline inflation is expected to continue aided by a good monsoon, allowing RBI to sustain its current accommodative stance.
However, Moody's in a report said India has a strong GDP growth, but private investment remains weak.
Modest exposure to trade in goods and a net-commodity importing status has to some extent shielded the economy from external headwinds.
However, weak global growth has meant a nine per cent annual decline in exports in real terms in fourth quarter of 2015 after declining by an average 5.6 per cent in the first three quarters of 2015.
"Moreover, investment spending fell in the last quarter of 2015, as did industrial production and capital utilisation rates remain low," it said.
India's overall economic growth, it said, is supported by robust consumer spending, which makes up 55 per cent of aggregate demand in the economy.
"Prevailing low headline inflation is expected to remain so, given the current forecast of a good monsoon season, and should allow the Reserve Bank of India to sustain its current accommodative stance," Moody's said.
It expects Indian economy to continue to grow close to an annual rate of 7.5 per cent in real terms in 2016 and 2017, largely driven by private consumption growth.
Private spending will be supported by the implementation of the public sector salary increases, mandated by the 7th Pay Commission, and a rise in rural incomes, provided the forecast of a good monsoon is realised.
This free script provided by
10+2 ADO APPOINTMENT APPOITMENT Archaeological survey of India Archaeology assam ASSEMBLY Assistant AVIATION Awards and Honors Bank BRICS business central approves CGL Chalu Ghadamodi CHHATTISGARH CHSL Civil Services Clerk commitee Computers Current Affairs Current Affairs in marathi daily marathi news and current affair exam oriented mpsc current affairs defence Ecology economy education employment ENGLISH Environment event foreign relation General Awareness Graduate Harappa civilisation Health high court Hindi Medium IBPS INDIA Indian scientists Insurance International Jobs Junior Engineer Kiran Institute of Career Achievements Kiran Prakashan Law LIC marathi MoA MoU NANOTECH nation national National Current Affairs in marathi NGO NICL Non-Technical Officer passes away person in news platinum jubilee POLICY political Pratiyogita Kiran Railways RBI report Research REWARD SBI SBI Associate scheme Science Science and tech Science and technology Science n tech Solved Papers sport sports SSC STATE Stenographer supreme court TAMILNADU technology telecom TIER-1 TIER-2 TODAY SPECIAL trade UGC UIICL UN Union Ministry Virtual World west bengal world world | world | Awards and Honors world | Thousand Island Lake | Species | dams | Balbina reservoir www.KICAonline.com www.KiranBookStore.com www.KiranOnlineExam.com www.KiranPrakashan.in स्पोर्ट