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24
January 2019
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GDP (The
Total Investment & Insurance Solutions)
The Indian economy is
expected to grow at 7.4 per cent in the current fiscal and its GDP growth will
rise to 7.6 per cent in 2019-20, before tapering down to 7.4 per cent in
2020-21, according to a UN report released on Wednesday.
The report United Nations'
World Economic Situation and Prospects (WESP) 2019 said that India's growth
continues to be underpinned by robust private consumption, a more expansionary
fiscal stance and benefits from earlier reforms.
"Yet, a more robust and sustained
recovery of private investment remains crucial to lift medium-term
growth," the report said, referring to the sustained slowdown in domestic
private investment owing to various factors such as the massive accumulated
non-performing assets (NPAs or bad loans) of banks, highly leveraged corporates
and a general credit crunch.
"There is very little controversy about India's growth potential and there is a consensus about the country being poised on the 7.4-7.5 per cent gross domestic product (GDP) growth rate," UNESCAP's Director and Head South and South-West Asia Office, Nagesh Kumar, told reporters here at the launch of the report. Noting that India's growth currently is fuelled by private consumption with the potential of expanding on the back of "pent-up demand", Kumar said that a revival of private investment could help push the country's growth trajectory above the 8 per cent level.
"There is very little controversy about India's growth potential and there is a consensus about the country being poised on the 7.4-7.5 per cent gross domestic product (GDP) growth rate," UNESCAP's Director and Head South and South-West Asia Office, Nagesh Kumar, told reporters here at the launch of the report. Noting that India's growth currently is fuelled by private consumption with the potential of expanding on the back of "pent-up demand", Kumar said that a revival of private investment could help push the country's growth trajectory above the 8 per cent level.
He said the downside risks
to these growth projections are posed by political uncertainty bearing on the
pace of reforms, global oil price volatility and financial instability created
by a tightening in global financial markets. On the global economic prospects,
the report said it would continue to grow at a steady pace of around 3 per cent
in 2019 and 2020, after expanding by 3.1 per cent in 2019, "amid signs
that growth has peaked." "However, a worrisome combination of
development challenges could further undermine growth," it said.
The risks to the outlook
are building, economic growth is uneven and is often failing to reach the
regions and individuals where it is most needed, it added. "These risks
include waning support for multilateral approaches; the escalation of trade
policy disputes; financial instabilities linked to elevated levels of debt; and
rising climate risks, as the world experiences an increasing number of extreme
weather events," the report said.
UN Secretary-General Antonio Guterres cautioned
that while global economic indicators remain largely favourable, "they do
not tell the whole story". He also said the UN report raises concern over
the sustainability of global economic growth in the face of rising financial,
social and environmental challenges.The Total Investment & Insurance
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