Home / Knowledge / News / Textiles / World Bank: Indian economy has turned the corner
World Bank: Indian economy has turned the corner
29
Apr '15
The World Bank has said that the Indian economy has turned the corner and has projected the country’s GDP to grow at 7.5 per cent in the current fiscal on account of increased economic activity and greater stability.

It also sounded a note of caution that the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), touted as the world’s largest anti-poverty programme, has paradoxically worked less well in India’s poorest states.

"India's economic growth is expected to rise to 7.5 per cent in 2015-16, followed by further acceleration to 7.9 per cent in 2016-17 and 8 per cent in 2017-18," the World Bank said in its India Development Update report. But the growth projection came with a rider.

"However, acceleration in growth is conditional on the growth rate of investment picking up to 11 per cent during FY16 to FY18," the World Bank said.

The government in the Union Budget 2015-16 had projected the GDP growth to be at 8.5 per cent this fiscal.

It said India's government has begun to implement reforms to unlock the country's investment potential to improve the business environment, liberalise FDI, boost both public and private investment in infrastructure, quickly resolve corporate disputes, simplify taxation and lower corporate taxes.

States are set to receive more resources and spending power, and the government has reiterated its resolve to implement GST by April 2016 which could increase India's tax to GDP ratio, it added.

To achieve higher investment growth, the report has called for fiscal reforms that protect public capital spending, financial sector reforms, and reforms in the business environment -- all of which can help unlock private investment.

"The government has made progress in several policy areas, and long-term prospects for growth remain bright for India," said World Bank Country Director for India, Onno Ruhl.

"The current situation offers an opportunity to further strengthen the business environment and enhance the quality of public spending. Continuous strong momentum in these reforms will further unleash the productivity that Indian firms need in order to create jobs and become globally competitive," Ruhl added.

The government has announced an ambitious development agenda supported by a three-pronged strategy of promoting fast and durable economic growth, improving the delivery of social benefits and extending social safety to the elderly and the underprivileged.

The report pointed to domestic and external risks, saying the recent economic turnaround and the outlook rest crucially on oil and commodity prices staying soft. "...to further insulate the economy from the global price of oil, the Update suggests weaning the fiscal outcomes more fully from oil prices, by encouraging alternative sources of energy, creating additional fiscal buffers by using petroleum taxation more actively, as well as rationalising subsidies."

Must ReadView All

Textiles | On 26th May 2017

Lenzing unleashes new eco-friendly fibre

There's a new eco-friendly fibre on the anvil—Austrian speciality...

Apparel/Garments | On 26th May 2017

Benetton seeks approval for FDI in single-brand retail

Global fashion brand Benetton Group, has sought Indian government's...

Apparel/Garments | On 26th May 2017

Walmart to conduct GST workshops for SME suppliers

With the objective of supporting its small and medium-sized (SME)...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Urs Stalder
Sanitized AG

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

Ritu Kumar
Label Ritu Kumar

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

news category


Related Categories:
May 2017

May 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