News / Economy

Indian Economy Showing Signs of Recovery

An Indian woman plants rice saplings at a paddy field after monsoon rains on the outskirts of Puri, Orissa, Aug. 21, 2014.
An Indian woman plants rice saplings at a paddy field after monsoon rains on the outskirts of Puri, Orissa, Aug. 21, 2014.
Anjana Pasricha

India’s economy is showing signs of recovery with the rate of growth at its fastest pace in over two years. The government says it expects the trend to continue.

It was promises of reviving the sluggish economy that brought the right-wing government led by Prime Minister Narendra Modi to office three months ago. And latest economic numbers suggest those expectations are being met.
 
The 5.7 percent growth reported in the April to June quarter is the highest since 2012.
 
Economists said the coming months were likely to see even more robust growth.
 
Economist N.R. Bhanamurthy with the National Institute of Public Finance and Policy in New Delhi forecast a growth rate of more than six percent this year.
 
“Going forward I would say recovery in the investment, particualrly in the manufaturing sector, and at the same time sticking to the fiscal consolidation map should lead to higher investment and higher growth in the current financial year,” said Bhanamurthy.
 
The economic upswing is partly due to measures taken by the previous government to speed up projects that had gotten stuck in recent years. The slow down in investment had pulled growth rates down to less than five percent and turned the mood pessimistic.
 
But analysts said the new government, voted in on its business-friendly agenda three months ago, has boosted sentiment among domestic and foreign investors.  
 
Since taking office in May, the government has raised foreign investment limits in the defense, insurance and railway sectors.
 
More importantly, it is promising to change the tough regulations of doing business in India, which have deterred both foreign and domestic investors.
 

India's Prime Minister Narendra Modi (L) shakes hands with chairman of Japan Business Federation (Keidanren) Sadayuki Sakakibara (R) during a luncheon organized by Keidanren in Tokyo, Sept. 1, 2014.India's Prime Minister Narendra Modi (L) shakes hands with chairman of Japan Business Federation (Keidanren) Sadayuki Sakakibara (R) during a luncheon organized by Keidanren in Tokyo, Sept. 1, 2014.
x
India's Prime Minister Narendra Modi (L) shakes hands with chairman of Japan Business Federation (Keidanren) Sadayuki Sakakibara (R) during a luncheon organized by Keidanren in Tokyo, Sept. 1, 2014.
India's Prime Minister Narendra Modi (L) shakes hands with chairman of Japan Business Federation (Keidanren) Sadayuki Sakakibara (R) during a luncheon organized by Keidanren in Tokyo, Sept. 1, 2014.

On Monday, Prime Minister Narendra Modi, speaking to businessmen in Tokyo where he is on a visit, told Japanese buisinessmen that he wanted to replicate “Japanese-like efficiency” in India.
 
He said he was aware of the steps that were needed to be taken for ease of doing business and for simplification of policies.
 
Japan is among a host of countries looking at India with renewed interest amid widespread optimism that its economy is on the mend.
 
Finance Minister Arun Jaitley said policies initiated by the government would revive the economy.
 
“In the first quarter of this year, a 5.7 per cent growth rate is enouraging. With the long term impact of all the new initiatives setting in, I am sure the impact in the coming quarters would be much larger,” said Jaitley.
 
However, the new government has disappointed some economists who say it has yet to put in place bolder reforms in areas such as labor and tax laws, which are politically sensitive. Without these, they say, India may not be able to return to the levels of growth that made it one of the world’s fastest economies during the last decade.

You May Like

Katrina Brought Enduring Changes to New Orleans

The city’s recovery is the result of the people and culture the city is famous for, as well as newcomers and start-up industries More

China to Open Stock Markets to Pension Funds

In unprecedented move, government to soon allow local pension funds to invest up to $94 billion in domestic shares More

Magical Photo Slides Show Native Americans in Late 1800s

Walter McClintock spent 20 years photographing the Blackfoot Indians and their vanishing culture at the dawn of the modern age More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Colombians Flee Venezuela as Border Crisis Escalatesi
X
August 27, 2015 2:08 AM
Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Is China's Economic Data Accurate?

Some investors say China's wild stock market gyrations have been made worse by worries about the reliability of that nation's economic data. And some critics say the reports can mislead investors by painting an unrealistically-strong picture of the economy. A key China scholar says Beijing is not fudging ((manipulating)) the numbers, but that the economy is evolving quickly from smoke-stack industries to services, and the ways of tracking new economic activity are falling behind the change. V
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Shipping Containers Provide Experimental Housing

Housing prices around the San Francisco Bay area are out of reach for many people, so some young entrepreneurs, artists and tech industry workers are creating their own houses using converted shipping containers. But as VOA's Mike O’Sullivan reports from Oakland, the effort requires ingenuity and dealing with restrictive local laws.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video Technique May Eliminate Drill-and-Fill Dental Care

Many people dread visiting dentists because they're afraid of drills. Now, however, a technology developed by a British firm promises to eliminate the need for mechanical cleaning of dental cavities by speeding a natural process of tooth repair. VOA’s George Putic reports.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.
Video

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.
Video

Video French Experiment in Integrating Roma Under Threat

Plans to destroy France’s oldest slum have sparked an outcry on the part of its Roma residents. As Lisa Bryant reports from the Paris suburb of La Courneuve, rights groups argue the community is a fledgling experiment on integrating Roma who are often outcasts in many parts of Europe.
Video

Video Kenyans Turn to Agriculture for Business

Each year Kenyan universities continue to churn out graduates for the job market despite the already existing high rate of unemployment among youth in the country. Some of these young men and women have realized that agriculture can be as rewarding as any other business or job, and they are resorting to agribusiness in large numbers as a way of tackling unemployment. Rael Ombuor reports for VOA.
Video

Video First Women Graduate Elite Army Ranger School

Two women are making history for the U.S. Army by proving they are among the toughest of the tough. VOA's Carla Babb reports from Fort Benning, Georgia as 94 men and those two women rise as graduates of the difficult Ranger school.

VOA Blogs

World Currencies

EUR
USD
0.8874
JPY
USD
120.83
GBP
USD
0.6497
CAD
USD
1.3271
INR
USD
66.162

Rates may not be current.