India's economy to grow by 6% in 2014-15
India’s economy is projected to grow by as much as six per cent this financial year, according to new analysis.
The India Economy Survey revealed that the emerging economic giant is likely to experience GDP growth in the value of between 5.4 per cent and 5.9 per cent in 2014/15.
Tabled by Arun Jaitley, India’s finance minister, the survey casts the subcontinent in a very strong position, with plenty of potential for investors home and abroad.
Coming at a time when a new government has just begun its tenure, which is aiming to promote significant and ambitious reform proposals, the data suggests that there is a lot of optimism amongst consumers and businesses.
“With the global economy expected to recover moderately, particularly on account of performance in some advanced economies, the economy can look forward to better growth prospects in 2014-15 and beyond,” the authors of the report stated.
The new Indian government, led by prime minister Narendra Modi and his Bharatiya Janata Party, is keen to build on the country’s recovery and end their first year in power with successful outcomes across the board.
According to the survey, further measures, such as developing the conditions necessary for momentum, restoring balance at a macroeconomic level and streamlining processes so that they are more efficient and cost-effective, could boost GDP growth up by as much as eight per cent over the next few years.
One of the schemes being put forward is a goods and services tax, although this is likely to come into effect in 2016.
However, Jitender Kumawat, an economist at Union Bank of India, said that people need to be cautious about such announcements as no consensus had been reached between politicians regarding this proposal.
India, which is the world’s largest democracy and the second most populous nation in the world, has a burgeoning middle class that has helped transform the image of the country and usher it into the modern age.
< Top image: David Brossard >