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At 7.3% in 2016, India to remain fastest growing economy: UN

India's economy is projected to grow by 7.3 per cent next year and will continue to be the fastest growing economy in the world in 2016 and 2017 amid a volatile global financial conditions that will see diminished trade flows and stagnant investment, according to a UN report released today.

The United Nations World Economic Situation and Prospects (WESP) 2016 report said that India will record a 7.3 per cent economic growth in 2016 and 7.5 per cent in 2017.

While the growth is only a marginal improvement from the 7.2 per cent India achieved in 2014-15, the country will remain the fastest growing economy in the world in 2016 and 2017, the report said.

India's rival in South Asia, China will see a slowdown in growth in 2016 to 6.4 per cent from 6.8 per cent it had achieved in 2015.

The growth of the Chinese economy will not improve in 2017, when it will grow by just 6.5 per cent, a percentage point slower than India, which will be the fastest growing economy in the world.

The report further said that the world economy, which stumbled in 2015, will see only a modest improvement in 2016/17 as a number of cyclical and structural headwinds persist.

Global growth is estimated at a mere 2.4 per cent in 2015, marking a downward revision by 0.4 percentage points from the UN forecasts presented six months ago.

In 2016, the world economy is projected to grow by 2.9 per cent and by 3.2 per cent in 2017, supported by generally less restrictive fiscal and still accommodative monetary policy stances worldwide, it said.

The report identifies some major headwinds for the global economy including persistent macroeconomic uncertainties, low commodity prices and diminished trade flows, rising volatility in exchange rates and capital flows, stagnant investment and productivity growth and continued disconnect between finance and real sector activities.

It further said that the anticipated timing and pace of normalisation of the US monetary policy stance is expected to reduce policy uncertainties and support a moderate pickup in investments and growth, while preventing excessive volatility in financial markets and ensuring an orderly adjustment in asset prices.

At 7.3% in 2016, India to remain fastest growing economy: UN - Times of India

 

[rahul1117kumar]

The World Bank has dropped the use of developing nation tag for India in its specialized reports and instead classifies it as a "lower-middle-income" economy in South Asia, a top official has said.

"In our World Development Indicators publication, we've stopped grouping low- and middle-income countries together as 'developing countries'. For analytical purposes, India continues to be classified as lower-middle-income economy," World Bank Data Scientist Tariq Khokhar.

"We are not changing term 'developing countries' or 'developing world' in our general work but when it comes to presenting specialized data, we will use more precise groupings of countries," Khokhar said in an e-mail interview, adding, the term developing country was no more useful for analytical purposes.

Accordingly, while India will be referred to as a lower-middle-income economy in all of World Bank's analytical reports, it may be referred to as a developing country only in some of the generic communications.

The decision to stop using the term developing countries, the World Bank specialist said, has been taken in view of the word having no universal definition, causing countries like Malaysia and Malawi to be come under the same category earlier.

"There is no internationally agreed definition of the term 'developing world'. There's often a big gap between the countries within the developing world grouping -- which make, for instance, Malaysia and Malawi both developing countries," Khokhar said.

Malaysia has a gross domestic product of $338.1 billion, according to the 2014 figures, while Malawi's stands at a merely $4.258 billion. Now while Malaysia is referred to as upper middle-income economy, Malawi falls in a low-income classification.

As per the classification, Afghanistan, Bangladesh and Nepal are low-income economies, Pakistan and Sri Lanka fall under lower-middle-income, Brazil, South Africa and China under upper middle income, Russia and Singapore under high-income-Non-OECD and the US under high income-OECD.

India is not a developing, but a`lower-middle-income' economy, says World Bank

 

[Sarkar]

Congress deserves gold medal for this remarkable achievement [emoji106]

 

[shawl_who]

Indian economy scored one over its former colonial masters when it reportedly took over United Kingdom’s economy for the first time in 150 years. Earlier, a Forbes report published on December 16 had revealed that India’s Gross Domestic Product (GDP) was set to take over the UK by 2020. But to quote Forbes, the surpass had been majorly accelerated by a nearly 20% decline in pound’s value in the last year or so. Earlier this year, India had taken over China as the world’s fastest growing economy. The International Monetary Fund in October had stated that India was likely to maintain its position for quite a while, with the GDP expected to rise by 7.6% through 2017. Meanwhile, the Brexit is expected to further dampen UK’s economic growth.

This can work in India’s favour, according to IE as the gap between both economies grow further. The United Kingdon’s GDP of GBP 1.87 trillion in 2016 converts to $2.29 at the exchange rate of £ 0.81 per $1. Meanwhile, India GDP of Rs 153 trillion translates to $2.30 trillion at an exchange rate of Rs 66.6 per $. Moreover, this gap between the two countries’ GDP is estimated to grow as India grows at 6 to 8% per annum as compared to United KIngdom’s growth of 1 to 2% per annum until 2020, according to Forbes.

India tops United Kingdom to become 6th largest economy of the world - The Financial Express

 

[Raviteja]

India overtakes France as 6th biggest economy, World Bank says credit goes to Modi govt

India overtakes France as 6th biggest economy, World Bank says credit goes to Modi govt

 

[Raviteja]

Hope in future it will be in top 5

 

[Digital Mastermind]

Good to see world back acknowledge these reforms

 

[Saj 007]

****Edited****

****Edited****.

Requesting both of you, don't start the issues again.

And to others, don't reply to the above posts.

 

[thisisjagan]

Requesting both of you, don't start the issues again.

And to others, don't reply to the above posts.

Bro, they're intentionally starting problems. You should better remove their posts. Now their posts forces ppl to respond.

 

[Raviteja]

Requesting both of you, don't start the issues again.

And to others, don't reply to the above posts.

Oops sorry forgot about that issue.

Changed my post