Arab Today, arab today hope for higher india economic growth
Last Updated : GMT 09:42:32
Arab Today, arab today
Arab Today, arab today

Hope for higher India economic growth

Arab Today, arab today

Arab Today, arab today Hope for higher India economic growth

India economy
Kuala Lumpur - Arab Today

Business leaders and analysts are optimistic about what the new year has in store for India’s economy as they look forward to reforms from the government that would help transform the economic landscape.

“We foresee an improved economic outlook for the Indian economy this year,” says Vimal Bhandari, the managing director and chief executive of IndoStar Capital Finance in Mumbai.

“Going forward, policy reforms initiated by the government, lower commodity prices and a surge in investment activity will be the key triggers in propelling the economy on an upward trajectory.”

The IMF is forecasting that the country will continue to be the world’s fastest growing economy in the fiscal year from April 2016 to March 2017 with growth of 7.5 per cent, up from a predicted 7.3 per cent during the previous 12 months.

Businesses and investors are perhaps most eagerly awaiting the long-delayed introduction of the goods and services tax (GST), which would simplify the country’s convoluted tax regime and is expected to boost economic growth. The move would be one of the most significant economic reforms in its history, but the opposition Congress party has been doing its best to prevent it from being passed.

“Key pending legislations such as the GST bill needs to be passed at the earliest to usher in a uniform taxation structure in the country, which will boost trade and commerce activity,” says Mr Bhandari. “A key bill that also needs to be passed in the next parliament session is the bankruptcy bill, which would mitigate the insolvency problems of businesses and ensure a viable investment climate in the country by creating a proper survival mechanism or speedy liquidation of sick businesses.”

The economy showed signs of improvement last year after struggling in previous years with soaring inflation and gaping deficits.

“India might be entering an era of low inflation and higher real GDP growth, which is the most optimal economic scenario for any country,” says Varun Goel, a vice president at Motilal Oswal, an asset management company based in Mumbai. “The foundations for a strong economic upturn have been put in place.”

But “the expected upturn in economy will neither be quick nor even”, he warns.

“India’s economy is in better shape compared to the past few years,” says Mahesh Singhi, the founder and managing director of Singhi Advisors, a global investment banking firm in Mumbai. “A few positives that would be carried forward to 2016 are low inflation, current-account and fiscal deficits, prospects of interest rate fall and low oil prices. The government spending is slowly picking up and monsoon outlook for 2016 is also better than 2015. One negative is corporate earnings, which have been tepid, but we expect earnings to recover in the second half of 2016.”

Action by the prime minister Narendra Modi’s government to push through reforms will be “crucial”, he adds.

“Last year was a washout, as all of us waited for key reforms like GST and land bills could not be passed. It becomes very important for the government to pass these bills to reinsure investors’ confidence. It is also very important for private sector to start spending on capex [capital expenditure].”

But there remain hurdles too, as banks face pressures, which have a spillover effect on the wider economy, and with the rupee trading at weak levels.

“The biggest challenge is bank NPAs [non-performing assets], which are preventing them from lending to the infrastructure and real estate sectors. The banking sector has already 13 per cent of its assets under the stressed category. Another challenge is the depreciating rupee, which is hurting imports.”
Source: The National

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today hope for higher india economic growth Arab Today, arab today hope for higher india economic growth

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday