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Policy measures boosted confidence in Indian economy: Government

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IANS New Delhi
Last Updated : Apr 06 2018 | 10:20 PM IST

The government on Friday said that global confidence in the Indian economy has increased on account of policy measures taken by the government and the Reserve Bank of India (RBI).

Quoting the "World Economic Situation and Prospects 2018" report of the United Nations, Minister of State for Finance Pon Radhakrishnan said the Indian economy is projected to grow at 7.2 per cent in 2018-19 and 7.4 per cent in 2019-20.

"The report indicates that the outlook for India remains largely positive, underpinned by robust private consumption and public investment as well as ongoing structural reforms," Radhakrishnan told the Lok Sabha in a written reply.

He said the share of public sector in total Gross Fixed Capital Formation (GFCF) increased from 21.4 per cent in 2011-12 to 23.3 per cent in 2014-15 and further to 25.1 per cent in 2016-17 (the latest year for which data is available).

The share of public GFCF in the Gross Domestic Product (GDP) at current prices increased from 7 per cent in 2014-15 to 7.2 per cent in 2016-17, he added.

The Minister said that Moody's rating agency also upgraded India's local and foreign currency issuer rating to "Baa2" with a stable outlook, from "Baa3" on the expectation that continued progress in India's economic reforms will enhance India's growth potential over time.

According to World Bank's Ease of Doing Business 2018 Report, India's ranking improved by 30 positions to 100th rank in 2018.

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As per the World Economic Forum, India's rank in Global Competitiveness Index is 40 out of 137 countries in 2017-18, an improvement over 71 out of 144 countries in 2014-15 and 55 out of 140 countries in 2015-16.

"The confidence in the Indian economy has increased on account of policy measures taken by the government and the RBI," he said.

--IANS

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First Published: Apr 06 2018 | 9:12 PM IST

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