2015 Planning For Economic Growth In India

Economic growth is when a country is growing in all peripheries and not restricted to well being in a limited set of aspects. The First world or developed countries have a different set of challenges while developing a nation like India has different goals. The Indian economy is currently looking to up its growth from being sluggish in the recent past with a relatively new government at the Centre.

India is expected to overwhelm the growth of fellow Asian giant China by 2016 with a recent UN forecast pegging India’s growth rate at about 7.7% in 2016. India growing would also mean growth for the entire region as per the same report. There are a number of efforts underway which are the reason for such a growth projection.

The government has realised that agriculture is important and hence has decide to bring at par the prices of agricultural products by putting customs duty at an even keel with prices in the global markets. The government aims to implement a dynamic trade policy regime which will be instantly responsive to export duty structures of foreign nations. India is one of the largest edible oil importers and hence tariff based duty structure for imports will go a long way in maintaining minimum base prices for the average farmer.

The government is also trying to convert the population burden in to a boon through the consistent and across the board development of quality man power. It has also recognised that local bodies such as panchayats will play a major role in this. The primary challenge here would be the chasm between incremental employment opportunities to population growth.

Estimates show that for the fiscal year ended on 2015 31st March, the average growth rate would be around 7.4%. The financial year 2015 is expected to bring up the GDP growth rate to 7.8% as per certain experts. The financial year gone by saw capital goods production first time leave the red zone however, durable goods production for consumers were still in the negative.

Subsidy programmes are being reformed and the critical part here will be that politics will have a play in this decision. Thus, programmes which are better focussed must be carefully chosen.

The world economy is in net looking at good times ahead with yen and euro depreciating and US moving in with policies briskly to balance out the appreciation adverse effects of dollar.

2016 is expected to see an average 3% rise in inflation with the expansion of the monetary policy. The make in India campaign is being closely watched no doubt by all and here is to rich dividends from all over.

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