January 21, 2019
The World Economic Situation and Prospects report read that global economic growth spurt has peaked but will remain steady at 3 per cent in 2019–2020
The UN says that India’s economy has continued to gain from robust private consumption, a more expansionary fiscal stance and regulatory reforms
India’s public budgets have been instrumental in promoting growth, prioritizing investments in infrastructure, subsidies as well as the rural economy
India’s reforms are not just creating lucrative investment environment for the private sector, but also ensuring inclusive development and sustainable growth
The Indian economy is expected to grow by 7.6 per cent in 2019, following an estimated expansion of 7.4 per cent in 2018, according to the United Nations World Economic Situation and Prospects (WESP) 2019 report released on January 21. The report also pegs India’s growth in 2020 at 7.4 per cent as the nation’s economy continues to benefit from robust private consumption, a more expansionary fiscal stance as well as regulatory reforms. The report added that the size and composition of India’s public budgets have been instrumental in promoting growth, prioritizing public investments in infrastructure, subsidies and welfare payments, and the rural economy. These factors, the UN report said, have helped to usher in an equitable and sustainable socio-economic development.
The UN report added that more robust and sustained recovery of private investment remained a crucial challenge to uplifting medium-term growth. India, the world’s fastest-growing major economy, has come up as a key stakeholder in the global trade and investment space. As a result, foreign investment inflow into India in 2017-18 rose to US$62 billion, from US$60 billion in the previous year. While FDI inflow into India has strengthened despite international economic uncertainties, contribution of the Government as well as Indian companies in building essential infrastructure to creating new jobs has steadily increased. Hence, India has come up as a conducive business destination owing to policy measures that seek to make foreign investments and trade easier and more profitable.
India has jumped 65 spots over last four years to reach the 77th ranking on the World Bank’s Ease of Doing Business metrics. A major driving factor behind this rise has been a series of policy and regulatory initiatives undertaken by the Government of India since 2014. Government of India’s reforms have been successful as they are not just creating a lucrative investment environment for the private sector, but under the “Sabka Saath Sabka Vikas” (Collective Efforts Inclusive Growth) agenda, they are ensuring social development, financial inclusion and sustainable growth. As a result, participation in building a “New India” has received strong interest, involving the previously unconnected sections of India, as well as a growing list of private entities and Indians across the world.