In a UN report it is said that India will maintain the growth rate of 7.6 percent in 2017.
It is because of the rebound in agriculture, strong manufacturing base coupled with the implementation of 7th Pay Commission and Goods and Services Tax regime.
According to the United Nation’s year-end update named as Economic and Social Survey of Asia and the Pacific 2016, which was released on Thursday, “In India, economic growth is expected to remain at 7.6 per cent in 2017 as investment regains momentum and the manufacturing base strengthens on the back of structural reforms.”
According to the report, growth will reach by a rebound in agriculture due to normal monsoon rain and the 7th pay commission will support the broad-based consumption growth.
It added, “Later, growth will be underpinned by a recovery in private investment as the recent push to accelerate infrastructure spending and measures to create a better investment climate -- due in part to the passage of GST and bankruptcy code.”
The UN reported also stated that, “Later, growth will be underpinned by a recovery in private investment as the recent push to accelerate infrastructure spending and measures to create a better investment climate -- due in part to the passage of GST and bankruptcy code.”
Whereas the report said, the low capacity utilisation and subdued growth in the extension of bank credit to industry will challenge the strong recovery in investment.
According to the report, The economic growth rate of China is projected to be ease slightly to 6.4 percent in 2017 because there will be further progress in rebalancing towards consumption, services and higher value added activities.
The report said, “Economic rebalancing continues in China, with consumption and services increasingly playing a more prominent role. Final consumption, including market sales of high-end consumer goods, contributed 71 per cent to economic growth in the first three quarters of 2016, which stood at 6.7 per cent, only slightly below the 6.9 per cent achieved in 2015 as a whole.”
--with agency inputs