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OECD pegs growth for this fiscal at 5.4%, says structural reforms needed to regain 8%

The report has also underlined that India's public deficit and debt are high compared to other emerging economies.

Written by Surabhi | Updated: November 19, 2014 1:53 pm
growth The OECD’s third survey of the Indian economy was released on ‎Wednesday

India is likely to grow at 5.4 per cent this fiscal, the OECD (Organisation for Economic Co-operation and Development) has said in its Economic Survey of India, warning that a return to growth rate of 8 per cent or more may be possible only through more structural reforms.

The OECD’s third survey of the Indian economy, which was released on ‎Wednesday has pegged GDP growth for India at 6.6 per cent next fiscal and 6.8 per cent in 2016-17.

“For 8 per cent growth, India needs to pursue a number of measures  including moving subsidies to social and physical infrastructure, tax reforms for fiscal ‎consolidation, cleaning up the banking system, removing structural barriers to job creation, especially in sectors like manufacturing and improving health care,” said Catherine Mann, chief economist, OECD.

While it has pegged retail inflation at 6.9 per cent this fiscal, WPI inflation is estimated at 7.1 per cent.

The report has also underlined that India’s public deficit and debt are high compared to other emerging economies.

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  1. J
    Nov 19, 2014 at 1:01 pm
    Jharkhand’s Only NRI Voter wants to Cast Vote, but Can Not :vishwagujarat/en/in...
    1. A
      Nov 19, 2014 at 9:06 am
      After seeing how much India has benefited from 1991, there should be much greater willingness to push the envelope on deep, wide ranging structural reforms. The recent burst of high growth prior to 2008 owed a lot to global factors, not all of which were sustainable; the way ahead lies through a slowing, anaemic world economy. With inspired leadership from PM Modi, India can do it.
      1. stud nitin
        Nov 19, 2014 at 8:26 am
        Yep...the numbers are hard reminder of the truth that nothing has changed and will change....the new PM is just trying to sail through this...lets see it this country and its people learn from this experience!