Home / Knowledge / News / Textiles / New reform has strengthened India's economic recovery: US
New reform has strengthened India's economic recovery: US
21
Oct '15
Amid modest global economic growth, the recovery of Indian economy has been strengthened by a new reform agenda of the government, a US Treasury Department report has said.

Global economic growth in the first half of 2015 has been modest, despite strengthening demand in the United States. “One reason for the lack of acceleration in global growth is that policy measures to support demand have been limited mostly to monetary accommodation, as fiscal policy has been either neutral or restrictive in many parts of the world,” said the semi-annual 'Report to Congress on International Economic and Exchange Rate Policies'.

“On a positive note, India's recovery has strengthened under a new reform agenda; since it is not a large importer, however, it is not yet a major driver of global growth,” the report adds.

According to the report, India's foreign exchange reserves reached an all-time high in June 2015 as the central bank purchased foreign currency to moderate appreciation pressures from foreign investment inflows on the rupee, particularly in the first quarter of the year. As of August 2015, with $328 billion India stood eighth in terms of major holders of foreign currency reserves.

A major reason for the growth in India's total foreign exchange reserves was a drop in oil prices, which is estimated to have saved $44 billion in imports in the first half of 2015. However, China's savings from imports of oil at lower prices were much higher at $120 billion during the same period.

On the euro area, the report says, it has emerged from recession, but its growth is highly uneven and too soft overall, and is characterised either by pockets of quite high unemployment, as in Spain and Greece, or very large current account surpluses, as in Germany and the Netherlands. “A major concern in the euro area is that demand is not stronger despite the extent of cyclical stimulus now in place.”

About emerging market economies, the report says weaker outlook is evident across these economies, which, at more than half of the world economy, exert a growing influence over global economic prospects. The slowdown in domestic Chinese investment and Chinese demand for imported commodities and components is having wide-ranging implications for other economies, and a further slowdown would add to these concerns.

“Korea's economy was weak in the first half of 2015 as sluggish domestic demand growth was insufficient to offset weaker external demand. Brazil is entering its second year of recession and will not be a source of growth in Latin America. Russia is struggling due to economic mismanagement, lower oil prices, and the impact of economic sanctions,” the report said. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

'Sportswear is much more mainstream than earlier'

Fashion | On 20th Jul 2018

'Sportswear is much more mainstream than earlier'

The business of sportswear has evolved at a fast pace over the years. ...

Courtesy: YKK

Textiles | On 20th Jul 2018

Japanese firm YKK explores opening office in Uzbekistan

Japanese company YKK recently discussed with the Uztuqimachiliksanoat ...

HFPA alerts member firms on latest US tariff announcement

Textiles | On 20th Jul 2018

HFPA alerts member firms on latest US tariff announcement

The US Home Fashion Products Association (HFPA) has alerted its...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search