Chief Economic Adviser, Arvind Subramanian, while pointing to remarkable turnaround witnessed in the recent months, underscored that prospects for the Indian economy look “very bright” on the back of lower Current Account Deficit (CAD) and the slew of reforms unleashed by the new government.
Arvind Subramanian highlighted that the current account deficit (CAD) was now within “manageable territory” as India benefitted a lot from falling commodity prices which helped bring down the current account deficit.
With the World Bank revising growth downwards for 'every major country except India', Chief Economic Adviser, Arvind Subramanian noted that India remained special in context to the global economy. He also pointed that with cash balances of state-owned enterprises looked exciting and suggested the need to invest more since PSUs could make mainly kick-start the growth of the economy.
Notably, World Bank in its report highlighted that India would catch up with China's economic growth in FY 2016-17. The multilateral lender also forecasted a growth rate of 7% each in the fiscal year 2016 and 2017 as against China's 7% and 6. 9% respectively.