India Rated As A Bright Spot In Asia By International Monetary Fund

The International Monetary Fund (IMF) recently released a report entitled ‘Regional Economic Outlook for Asia and Pacific’ which rated India as a new bright spot on the Asian continent and stated that the country’s GDP will rise to 7.2% during the fiscal 2014-2015 and will improve even more during 2015-2016 and rise to around 7.5%.

The Indian economy has received a huge influx of foreign investment during the last 12 months as Prime Minister Narendra Modi has rolled out a number of financial policies that encourage business development and promote financial growth in the country. Modi won the election by championing the cause of making India’s economy stronger and improving the standard of living throughout the country.

The report from the IMF stated that “India a new bright spot in Asia, and its growth is expected to strengthen to 7.5 per cent in 2015 and also 2016, benefitting from the recent policy reform announcements and lower oil prices. Early implementation of the reforms will reinforce confidence and increase potential growth”.

The report also made mention that India’s long term growth prospects look robust but the country’s medium term prospects posed a bigger challenge to the Indian economy. Industries such as the mining, energy and power sectors must be further developed and strengthened quickly so that they can provide more stability to the country. The IMF also had a few words of advice for India suggesting that a simplification of financial policy and faster clearances of environmental and land licenses would speed up development in the country.