Global Rating Agency Moody’s forecasts that Indian economy will grow at 7.5 percent in 2015 [ Current Affairs ]
Global Rating Agency Moody’s forecasted that Indian economy to grow at 7.5 per cent in 2015 which is high from previous year 2014 (7.2). Reserve Bank of India (RBI) to cut interest rates by 50 basis points easing pressure on the private sector for low inflation rate.
- The growth projections come soon after Moody’s on 9 April 2015 had revised India’s sovereign ratings outlook to positive (Baa3) from stable. Another ratings agency, Fitch, had reaffirmed its stable outlook on India.
- The government’s infrastructure and disinvestment programs should provide a boost to domestic-oriented industries on lower rates.
- Moody’s said that foreign investment in India has been weak because of significant red tape and taxes but government is taking encouraging steps to reduce these burdensome regulations to entice more foreign investment.
- Other than on the disinvestment front, it said the government has begun selling public sets as it plans to raise 70000 crore rupees in fiscal 2015-2016.
- World Bank in its South Asia Economic Focus report released projected that Indian economy will grow at 7.5 percent in 2015-16 and could reach 8 percent in 2017-18.
- The government is expected to cut expenditure to meet its 3.9 percent deficit target for 2015-2016.However, lower government spending is a downside risk to forecast over the coming year because if revenues fall short.
- Published on: April 21, 2015