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

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Courtesy: Authentic Brands Group

Apparel/Garments | On 17th Jan 2017

Teen retailer Aéropostale reopens 500 stores in US

Teen apparel retailer Aéropostale has reopened 500 stores in the US,...

Courtesy: Centric Software

Information Technology | On 17th Jan 2017

Centric releases version 6.0 of PLM solution

Centric Software, the leading PLM solution for fashion, retail,...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Amardeep Singh
Orient Craft

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kerem Durdag
Biovation II LLC

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

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Igor Chapurin
Chapurin

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Wendell Rodricks
Wendell Rodricks

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

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search