Despite reforms over the past year disrupting GDP numbers, India could unleash more of its potential over the medium term and still turn the world’s third-largest economy in the next decade overtaking Japan and Germany, according to HSBC, which expects growth to slow from 7.1 per cent last year to 6.5 per cent in 2017-18 and 7 per cent in 2018-19.
The growth will then move up to 7.6 per cent in 2019-20, foresees HSBC. India’s GDP growth slipped to a three-year low of 5.7 per cent in April.Despite reforms over the past year disrupting GDP numbers, India could unleash more of its potential over the medium term and still turn the world's third-largest economy in the next decade overtaking Japan and Germany, according to HSBC, which expects growth to slow from 7.1 per cent last year to 6.5 per cent in 2017-18 and 7 per cent in 2018-19.#
India is caught between two worlds — one slowing and experiencing weak growth across the main sectors, which will be seen in the current fiscal and the next, and the other reviving, which will appear beyond 2019-20, HSBC said in a research note.
Higher growth on the back of the productivity gains resulting from structural reforms would be ‘longer lasting’, the report added. (DS)
ALCHEMPro News Desk – India
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