After United Nations (UN) in its latest report, projected India's GDP growth rate of 7.2% in 2018 and 7.4% in 2019, an UN economic official has said that Indian economy can achieve 8% growth rate for next two decades, if it focus more on promoting investment and improving the living conditions of its people. He also noted that the country has largely positive and growth favorable economic conditions but it needs to come out with the next series of reforms to achieve its potential.
Sebastian Vergara, an Economic Affairs Officer at the United Nations listed down various factors which have led to positive economic conditions in India, which includes growth of private consumption, sound macroeconomic policies, and government’s emphasis on public investment and infrastructure projects. He further added that county’s fiscal policy has also provided support for the economic activity.
On the demonetizational front, UN expert said that the note ban had resulted in temporary liquidity crunch, but it has resulted beneficial for the banking sector and to increase the tax base. He also noted that in the current year, the government has been focusing particularly on the banking sector, with other reform measures and these reforms are helping the Indian economy to improve its efficiency and increase the medium-term prospects of its economy.