New Delhi: The United Nations has predicted that Indian economy will get back on the road to economic growth in the current and next fiscal years. The UN projects a 5.7% growth in the present fiscal year and 6.6% in the coming fiscal year. This is higher than the World Bank’s projection of just 5% released earlier this month.
The head of UN’s Global Economic Monitoring Branch, Dawn Holland, said that although there was a steep decline in growth, India was still one of the high performers globally. He added that the growth rate will improve because of the steps taken.
Last year the world’s gross product growth rate had shrunk to just 2.3%, which was the lowest in a decade. The US-China trade war had played a significant part in this downturn.
India’s growth rate also plummeted as a result but still maintained to hold on. In the current fiscal only China has a higher growth rate than India among the world’s large economies.
UN’s Associate Economics Affairs Officer, Julian Slotman, said, “Globally we have seen a large impact of trade tensions, particularly between the US and China, but also other major economies, that have affected growth rates across the globe and also, of course, India which is a very open economy, that has a lot to gain from international trade.”
He also attributed the decline in Indian growth to lowering investment and private consumption.
However, Slotman, said that the stimulus steps taken by the government will help stimulate the economic growth in 2020.
