India’s GDP to grow at 7.5% for 2016-17

May 4, 2016 12:21 IST

REGIONAL_ECONOMIC_OUTLOOKInternational Monetary Fund (IMF) in its April 2016 Regional Economic Outlook for Asia and the Pacific forecast retained India’s growth rate at 7.5 percent for the year 2016.

The IMF report titled Regional Economic Outlook: Asia and Pacific, Building on Asia’s Strengths during Turbulent Times said that this growth momentum is expected to be underpinned by private consumption, which has benefited from lower energy prices.

It said that India that had a GDP growth rate of 7.3 percent in 2015 will have 7.5 percent growth in 2016 and 2017.

But it called on the policy makers to speed up the structural reform implementation. It suggested them to capitalise on the favourable economic momentum to speed up the structural reform implementation.

An incipient recovery in private investment is expected to help broaden the recovery. But the IMF also observed that weak exports and sluggish credit growth will weigh on the Indian economy.

It said that the growth in Asia and the Pacific is expected to be 5.3 percent in 2016-2017, marginally lower than the previous estimate of 5.4 percent.

In context of China and Japan, it said that the two nations will continue to face challenges. China's growth is forecast to moderate from 6.9 percent in 2015, to 6.5 percent in 2016 and 6.2 percent in 2017. Japan's growth is expected to continue at 0.5 percent in 2016, before dropping to -0.1 per cent in 2017.

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