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‘Indian economy will be good in 2016’

‘Indian economy will be good in 2016’

Indian Economy is doing so better. GDP growth is up, Inflation is under control, revenues are up, interest rate is down and rupee is strong. This did not happen by accident, it show us what good Narendra Modi has done to India.

Posted by Vivek Shetty on Thursday, December 31, 2015

Concern over the export front because of the deficiencies in the manufacturing sector

Indian economy is poised to do well next year also and the growth rate is expected to be in the range of 7.5 per cent in 2016 as it along with China will become the two best-performing nations in the world, observed World Bank Chief Economist and former Economic Advisor to India Kaushik Basu on Tuesday. “There are some concerns on the export front because of the deficiencies in the manufacturing sector. Traditionally India has been lagging behind on manufacturing and if necessary steps are taken it will help in jobs creation. Remember from early 90s, it has been the services sector which has been doing well,” he explained in a chat with reporters at the valedictory function of the 98{+t}{+h}annual conference of Indian Economic Association.

Though the U.S. Fed rate had changed it had little impact on the Indian economy and this was another indicator the Indian economy was “strong,” said Dr. Basu, also the World Bank’s vice-president. The World Bank will be releasing the next report on the global economy in the first week of January where few more details will be made available.

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Subsidies vs wastage

Dr. Basu also said that while subsidies were necessary because of the number of poor in the country, these should be targeted better so that there is no wastage. The country should also try out new ideas on the higher education front since investment in the sector in the earlier decades had helped the country to face up to the globalisation era.

Earlier, addressing the delegates, the noted economist said India has to keep up with its intellectual and higher educational activities while ensuring that societal inequities are not tackled. Market forces too have a role to play in a country’s growth and the State can channelise the entrepreneurship potential of the people with a better regulatory approach.

“Globalisation is a reality whether we like it or not. India along with China have actually benefited hugely from it. By getting our policies right we can benefit further, he said. With reference to Telangana and Hyderabad, Dr. Basu noted the “sharp dip” in poverty levels in recent years and said the capital had the potential to become the top three cities in the country by leveraging its advantages.

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