India ‘s economic growth will slow down somewhat but stay robust, at close to 7.50% in 2019 and 2020, OECD has said. New Delhi: India ‘s economic growth will decelerate somewhat but stay robust, at near to 7.50% in 2019 and 2020, the Organization for Economic Cooperation and Development (OECD) has said. “Economic growth will slow but remain robust relatively, at close to 7.5% in 2019 and 2020,” the Paris-based company said for India in its 2018 Economic Outlook.
Tighter financial conditions, higher essential oil prices, adverse terms of trade, lower development in partner countries, and rising political uncertainties in India and can have a tendency to reduce development overseas, it said. OECD said though higher oil prices and rupee depreciation are placing pressure on demand, inflation, current accounts, and public finances, and structural reforms will help business investment and exports.
These reforms include the new Insolvency and Bankruptcy Code, smoother implementation of the Goods and Services Tax (GST), better highways and electricity and bank or investment company recapitalisation. Stresses on inflation are also rising from recent increases in housing and wages allowances for open public employees. Core inflation and inflation expectations are edging up, it cautioned. However, the organization said monetary plan should be tightened as inflation anticipations are trending up and there are several upside risks to inflation.
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