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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