18 April,New Delhi
International credit rating agency Moody’s has predicted India’s growth to be 7.5 percent for the year 2015.
This comes a week after it revised its outlook for India to ‘positive’ from ‘stable’. Helped by India’s recent policy initiatives, pick-up in investments and lower oil prices, the economy is on a cyclical upswing.
A Moody’s analyst said low inflation enabled the Reserve Bank of India to cut interest rates by 50 basis points easing pressure on the private sector. He further added that lower rates as well as the government’s infrastructure and disinvestment programmes should provide a boost to domestic-oriented industries.
Moody’s Analytics is of the view that India’s state-owned companies are notoriously inefficient, with significant bureaucracy and endemic corruption. Asset sales can make companies more productive and should ease the supply bottlenecks choking the economy.
Earlier this week, International Monetary Fund projected that India will overtake China as the fastest growing emerging economy in 2015-16. Another ratings agency, Fitch, also reaffirmed its stable outlook on India.