India’s growth is expected to accelerate to 5.6% in the current fiscal and further to 6.5% in 2015-16, buoyed by strong investments and political certainty, rating agency Fitch said on Wednesday.
India will be the only BRIC nation where growth picks up in FY 15 and further accelerates in FY 16 owing to an expected improvement in business environment, the rating agency said. “The new government has started rolling out a number of policies, which may improve the efficiency of the bureaucracy and strengthen the investment climate,” it said. Fitch expects GDP growth to pick up to 5.6% in FY 15 (ending in March) and 6.5% in both FY 16 and FY 17, the agency said in its global economic outlook report. “Investment is likely to rise now that political uncertainty has disappeared since the new government came to power last May ,“ it added.
RBI has projected a 5.5% GDP growth for the current fiscal and 6.3% for 2015-16.
Fitch further said the expected pick-up is supported by the 5.7% GDP growth in April June quarter of current fiscal.
India had clocked sub-5% growth in the previous two fiscals. Fitch said lifting GDP growth to substantially higher levels would require large productivity gains through implementation of reforms related to governance, product and labour markets, as well as reduction of infrastructure bottlenecks.
The agency has a stable outlook on India’s ‘BBB-’ rating.
Fitch said in the longer run, a credible low inflation environment would benefit growth by improving the investment environment.
India will be the only BRIC nation where growth picks up in FY 15 and further accelerates in FY 16 owing to an expected improvement in business environment, the rating agency said. “The new government has started rolling out a number of policies, which may improve the efficiency of the bureaucracy and strengthen the investment climate,” it said. Fitch expects GDP growth to pick up to 5.6% in FY 15 (ending in March) and 6.5% in both FY 16 and FY 17, the agency said in its global economic outlook report. “Investment is likely to rise now that political uncertainty has disappeared since the new government came to power last May ,“ it added.
RBI has projected a 5.5% GDP growth for the current fiscal and 6.3% for 2015-16.
Fitch further said the expected pick-up is supported by the 5.7% GDP growth in April June quarter of current fiscal.
India had clocked sub-5% growth in the previous two fiscals. Fitch said lifting GDP growth to substantially higher levels would require large productivity gains through implementation of reforms related to governance, product and labour markets, as well as reduction of infrastructure bottlenecks.
The agency has a stable outlook on India’s ‘BBB-’ rating.
Fitch said in the longer run, a credible low inflation environment would benefit growth by improving the investment environment.
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