Tuesday 18 November 2014

India Needs Structural Reforms to Grow: OECD

Organisation for Economic Cooperation and Development (OECD) said India's economy will accelerate in 2015 but will fail to attain the heady growth rates of the past decade without sweeping structural reforms.

In a country survey, the Paris-based think tank forecast that Asia's third-largest economy would grow by 6.6% in 2015, up from its last forecast of 5.7% growth in May. Growth would edge higher to 6.8% in 2016, it said.

"The economy has shown signs of a turnaround and imbalances have lessened," the OECD said in the report which, while providing comfort to Prime Minister Narendra Modi that things are looking up, highlighted tough choices ahead.

In its latest forecast, the OECD said it expected inflation to fall to 5.4% in 2015 and nudge higher to 5.6% the following year, after 6.9% in 2014. In May, it forecast that inflation would remain above 6% over the next few years.

The OECD tracks its 34 advanced economy members, in addition to issuing forecasts and surveys of large non-member countries like India.


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