Home / Knowledge / News / Textiles / Indian economy is showing signs of turnaround, says OECD
Indian economy is showing signs of turnaround, says OECD
Nov '14
The Indian economy is showing signs of a turnaround, according to the Organisation for Economic Co-operation and Development (OECD).  However, new reforms, some of which are introduced by Prime Minister Narendra Modi, need to be implemented to put the country on a path to strong, sustainable and inclusive growth, OECD says in its latest Economic Survey of India.
The Survey notes that the Indian economy slowed more than many other countries since 2011, but it is now recovering faster. It predicts India’s GDP to grow by more than 6.5 per cent annually in the coming years.
Investment and exports are driving the rebound of the Indian economy, but growth will be sustained at a stronger pace if further steps are taken. According to the Survey, in the near term, stable and lower inflation and smaller deficits are needed. For mid-term growth, structural improvements to the business climate are crucial, whereas in the longer-term, health improvements and increased female participation in the labour market are needed for sustaining strong and inclusive growth.
“The Indian economy is coming out of some tough times in recent years, with a steep decline in growth, stubbornly high inflation and a wide current account deficit, but the situation is now improving,” said OECD chief economist Catherine L Mann, who presented the Survey in New Delhi along with Arvind Subramanian, chief economic adviser to the Government of India.
Mann said, “Key reforms in the business environment, to labour markets and to infrastructure will bring economic growth back to the higher levels seen in the recent past, create good jobs and improve well-being for all Indians.”
Identifying policies critical for future growth of the Indian economy, the OECD says the country should adopt a flexible inflation-targeting framework, which will help contain inflation expectations and provide support for saving and investment. It also suggests implementing a broad national value-added tax (GST) and cutting energy subsidies, as part of wider efforts to put public finances on a stronger footing.
The Survey draws attention to the long-term challenges facing India, notably the need to create better-quality jobs for those currently working in the informal sector, and to provide employment for the massive influx of young people into the labour force over the coming decades.
It also mentions that reducing barriers to manufacturing growth, which has contributed relatively little to growth of GDP or exports, will be critical in the future development of the Indian economy. (RKS)

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 26th Oct 2016

SGS develops 4C chemical management model for apparel

SGS, a leading inspection, auditing, certification, testing, and...

Textiles | On 26th Oct 2016

Whitehouse & URI Business Centre start RI textile network

Senator Sheldon Whitehouse and the University of Rhode Island...

Textiles | On 25th Oct 2016

Arvind to dilute 10% stake in brand business arm

Arvind Limited, one of India’s largest integrated textile and apparel ...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

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...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Wendell Rodricks
Wendell Rodricks

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search