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.