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

Textiles | On 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Kerem Durdag
Biovation II LLC

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Wendell Rodricks
Wendell Rodricks

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search