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

Video Claims to Show Shia Forces in Iraq Executing Sunni Boy

While not yet independently confirmed, brutal killing already has gotten attention of Islamic State followers on social media More

After Six Years, Little Change for Niger Delta's Former Militants

Nigerians who laid down arms in exchange for government amnesty subsidies fear program may end with upcoming presidential elections More

Vietnam Pushes for More Educated Drivers to Curb Road Deaths

Transportation officials hope that making a greater effort to get drivers to learn the rules of the road will reduce fatal crashes 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.
NASA Spacecraft Approaches a Dwarf Planeti
X
George Putic
March 04, 2015 8:51 PM
NASA’s Dawn spacecraft will make history on Friday, March 6, when it becomes the first man-made object to orbit a dwarf planet named Ceres. It is located in the asteroid belt between Mars and Jupiter, almost 500 million kilometers from Earth. Among other objectives, Dawn will try to examine two mysterious bright white spots detected on the planet’s surface. VOA’s George Putic has more.
Video

Video NASA Spacecraft Approaches a Dwarf Planet

NASA’s Dawn spacecraft will make history on Friday, March 6, when it becomes the first man-made object to orbit a dwarf planet named Ceres. It is located in the asteroid belt between Mars and Jupiter, almost 500 million kilometers from Earth. Among other objectives, Dawn will try to examine two mysterious bright white spots detected on the planet’s surface. VOA’s George Putic has more.
Video

Video Young Muslims Radicalized Online

Young Muslims are being radicalized ‘in their bedrooms’ through direct contact with Islamic State or ISIL fighters via the Internet, according to terror experts. There are growing concerns that authorities and Internet providers are not doing enough to counter online extremism - which analysts say is spread by a prolific network of online supporters around the world. Henry Ridgwell reports from London.
Video

Video African Americans Recall 1960's Fight For Voting Rights

U.S. President Barack Obama and thousands of people will gather in the small southern U.S. city of Selma, Alabama, Saturday, March 7th to commemorate the 50th anniversary of a historic voting rights march that became known as “Bloody Sunday." VOA’s Chris Simkins traveled to Alabama and introduces us to some of the foot soldiers of the voting rights struggles of the 1960’s.
Video

Video Positive Messaging Transforms Ethiopia's Image

Ethiopia was once known for famine and droughts. Now, headlines more often point to its fast-growing economy and its emergence as a regional peacemaker. How has Addis Ababa changed the narrative? VOA's Marthe van der Wolf reports.
Video

Video Cyber War Rages Between Iran, US

A newly published report indicates Iran and the United States have increased their cyber attacks on each other, even as their top diplomats are working toward an agreement to guarantee Iran does not develop a nuclear weapon and to free Iran from international sanctions. The development is part of a growing global trend. VOA’s Al Pessin reports from London.
Video

Video Answers Elude Families of MH370 Passengers

For the families on board Malaysia Airlines flight MH370, an airline official’s statement nearly one year ago that the plane had lost contact with air traffic control at 2:40 AM is the only thing that remains confirmed. William Ide reports.
Video

Video Land Disputes Arise Amid Uganda Oil Boom

Ugandan police say there has been a sharp increase in land disputes, with 10 new cases being reported each day. The claims come amid an oil boom as investors appear to be cashing in by selling parcels of land to multiple buyers. Meanwhile, the people who have been living on the land for decades are chased away, sometimes with a heavy hand. VOA's Serginho Roosblad reports.
Video

Video In Russia, Many Doubt Opposition Leader's Killer Will Be Found

The funeral has been held in Moscow for Boris Nemtsov, the opposition leader who was assassinated late Friday just meters from the Kremlin. Nemtsov joins a growing list of outspoken critics of Russia under the leadership of President Vladimir Putin who are believed to have been murdered for their work. VOA’s Daniel Schearf reports from Moscow.
Video

Video Simulated Astronauts Get Taste of Mars, in Hawaii

For generations, people have dreamed of traveling to Mars to explore Earth's closest planetary neighbor. VOA's Mike O'Sullivan reports that while space agencies like NASA are planning manned missions to the planet, some volunteers in Hawaii are learning how humans will cope with months in isolation on a Mars base.
Video

Video Destruction of Iraq Artifacts Shocks Archaeologists

The city of Mosul was once one of the most culturally rich and religiously diverse cities in Iraq. That tradition is under attack by members of the Islamic State who have made Mosul their capital city. The Mosul Museum is the latest target of the group’s campaign of terror and destruction, and is of grave concern to archaeologists around the world. VOA’s Kane Farabaugh reports.
Video

Video Smartphones May Help in Diagnosing HIV

Diagnosing infections such as HIV requires expensive clinical tests, making the procedure too costly for many poor patients or those living in remote areas. But a new technology called lab-on-a-chip may make the tests more accessible to many. VOA’s George Putic reports.
Video

Video Afghan Refugees Complain of Harassment in Pakistan

Afghan officials have expressed concern over reports of a crackdown on Afghan refugees in Pakistan following the Peshawar school attack in December. Reports of mass arrests and police harassment coupled with fear of an uncertain future are making life difficult for a population that fled its homeland to escape war. VOA’s Ayesha Tanzeem reports from Islamabad.

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.8954
JPY
USD
119.75
GBP
USD
0.6515
CAD
USD
1.2518
INR
USD
61.921

Rates may not be current.