OECD raised India growth forecast to 6.6 percent for 2015-16

Organisation for Economic Cooperation and Development (OECD) on 19 November 2014 raised India growth forecast to 6.6percent for the financial year 2015-2016.

 OECD maintained that to achieve 6.6 percent growth, India needs to revive manufacturing activities.

Earlier in May 2014, OECD had forecasted the growth of Indian economy at 5.7 percent.

In its key recommendations the OECD said India should:

• Improve the macroeconomic framework by introducing flexible inflation targeting, pursuing fiscal consolidation, implementing a national value-added tax and strengthening banking oversight.

• Boost manufacturing jobs by simplifying labour laws, improving access to education, accelerating approvals for infrastructure projects and improving the business climate.

• Increasing female economic participation by ensuring equal work opportunities for women and expanding access to education and skills training for female entrepreneurs

• Improve access to, and the quality of, healthcare

• To achieve 8% growth, India needs to reduce subsidies, spend more on social and physical infrastructure, bring a Goods and Services Tax and free up funds for infra. India also needs to improve the quality of fiscal consolidation at the Central and state level.