Thursday, 14 May 2015

India to grow at 8.1% in 2015-16: UN report

Indian economy is likely to clock 8.1 percent growth in the current financial year, spurred by strong consumer spending amid low inflation, infrastructure projects and government's reform measures, says a UN report.

Investment is also expected to rebound, although unevenly, given the still low capacity-utilisation rate at about 70 percent, it said.

"Growth is forecast to accelerate to 8.1 percent in 2015 and 8.2 percent in 2016, benefiting from the acceleration of infrastructure projects, strong consumer spending due to lower inflation and monetary easing and gradual improvements in market sentiments," said the UN ESCAP report titled, 'Economic and Social Survey of Asia and the Pacific 2015.

It said however that volatile capital flows that may follow monetary policy normalisation in the US remain the downside risk.

The growth projection is in line with the estimates of the Finance Ministry.

The International Monetary Fund (IMF) and the World Bank have projected India's growth at 7.5 percent for the current fiscal. However, the Reserve Bank of India (RBI) has forecast a growth rate of 7.8 percent.

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