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India to grow at faster rate than China, macroeconomic outlook remains stable, says UN report

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By NewsGram Staff Writer

This year, India will surpass China with an expected growth of  7.7 per cent, a jump of almost 1.5 per cent from the projection made in January, according to a new UN report.

“India is now projected to grow by 7.6 per cent in 2015 and 7.7 per cent in 2016, surpassing the growth of China,” said the United Nations Department of Economic and Social Affairs(UNDESA) report.

Earlier in January, the UNDESA report had stated that the GDP of India will be 6.2 in this year.

“This revision, mostly reflects a higher growth trajectory in India, where the recent changes in methodology and data sources have resulted in a considerably higher official growth figures for the past two years,” said the latest report.

The recent UN report concurred with reports from other international companies like World Bank and the International monetary fund(IMF), that India will have a faster growth rate in the future.

“Overall, I think the authorities in India have done a very good job over the past two years and this is actually reflected in some indicators,” Ingo Pitterle, a UNDESA Economic Affairs Officer and India expert said.

“In 2013 India was grouped among the fragile economies of Turkey, South Africa, Indonesia and Brazil. And now, you look at the same variables, they look very different,” Pitterle said.

“When you look at the currencies side, the Indian Rupee is the only currency that has held up well here, which is a sign of confidence by investors and the international community in the Indian economy”, he said.

The report also pointed out to string of factors to give a clear view that India was having a very sustainable economic condition.

“The rupee has done better than most currencies, inflation is down, monetary policy is prudent, current account deficit has declined, external imbalances have reduced and oil prices have softened”, the report said.

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India To Become Global Steel Manufacturing Hub By 2031

The Modi government seems determined to boost the country's crude steel production capacity to 300 MT by 2030-31 in a bid to make India a global steel manufacturing hub

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steel, manufacturing, india, global
Modi government seems determined to boost the country's crude steel production capacity. Wikimedia Commons

The Modi government seems determined to boost the country’s crude steel production capacity to 300 MT by 2030-31 in a bid to make India a global steel manufacturing hub.

At present, China is the world’s largest steel producer with a production capacity of 928.3 MT of crude steel (2018), while India, with 106.5 MT of crude steel production, ranks second on the list. Dedicated participation of all stakeholders is a must to achieve the projected capacity target of 300 MT by 2030-31.

To deliberate on major issues plaguing the sector, the Ministry of Steel is organising in Delhi on Monday a day-long conclave, during which Steel Minister Dharmendra Pradhan will seek suggestions from the stakeholders to address its challenges, identify opportunities and arrive at tangible interventions that can aid the growth of the Indian steel industry.

The National Steel Policy 2017 envisages ‘creating a self-sufficient steel industry that is technologically advanced, globally competitive and promotes inclusive growth’.

Being the third largest steel consumer in the world after China and USA, India’s per capita steel consumption at 74 kgs is one-third the global average of 225 kgs.

steel, manufacturing, india, global
Being the third largest steel consumer in the world after China and USA, India’s per capita steel consumption at 74 kgs is one-third the global average of 225 kgs. Wikimedia Commons

Various countries have focused on rapidly increasing their steel consumption in the high growth phase of their economy. At present, India’s majority steel demand comes from construction, infrastructure, automobiles and capital goods, among others.

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Steel intensive construction offers an increased pace of durable and environmentally sustainable construction. Its recyclable nature also contributes to the circular economy.

The government has set a target to make India a $5 trillion economy by 2024-25, therefore promoting domestic steel industry is essential, given its high GDP multiplier and critical role in the construction and infrastructure sectors, said the Ministry. (IANS)