The UN Economic and Social Commission for Asia and the Pacific (ESCAP) in its latest report has said that Indian economy will grow 7.5 per cent next year by virtue of consumption revival and higher infrastructure spending. Though, India’s growth is projected stable at 7.1 percent for 2017 before surging to 7.5 percent next year, underpinned by higher private and public consumption and increased infrastructure spending.
The regional development arm of the United Nations, in its report further added that in the medium-term, India will also benefit from recent reforms measures aimed at de-clogging supply side bottlenecks. While, implementation of good and services tax (GST), amendment of a bankruptcy law and opening up of pharmaceuticals, defence and civil aviation sectors will help India in its economic growth.
The report talking about the demonetisation drive taken by government during November-December last calendar, said the impact would be transient on the economy. However, a slower-than-expected recovery would particularly diminish the outlook for cash-intensive sectors and supply chains for agricultural products. On the trends in the Asia-Pacific region, the UN ESCAP has found growth in the region moderating in recent years compared to its historical trend and a rebound in 2010.