India needs continued structural reforms to boost growth: UN report
A UN report on Friday said continued structural reforms are necessary to boost growth in India, which is currently facing an economic slowdown.
The World Economic Situation and Prospects 2020 (WESP) report has also lowered GDP growth estimate for India while expressing hope that combination of fiscal stimulus and financial sector reforms will help boost consumption.
"After experiencing a sharp economic slowdown from 6.8% in 2018 to 5.7% in 2019, India has committed to an ambitious fiscal expansion to complement the country's already loose monetary policy.
"The combination of fiscal stimulus and financial sector reforms, boosting investment and consumption, is expected to support a recovery in growth to 6.6%, but it will take continued structural reforms to bring India's growth back to its previous levels," it said.
However, the data related to India was revised to 5% for the current fiscal and 5.85.9% for the next financial year, Nagesh Kumar, Head, UN Economic and Social Commission for Asia and the Pacific, said.
While presenting the report, he said the GDP forecast in WESP did not take into account the latest growth numbers released by India's National Statistical Office (NSO).
The report, he said was computed in October 2019 and NSO's advanced growth estimates were released in January 2020 suggesting country's growth would slip to 5% during 2019-20 fiscal.
Kumar further said India's macro economic fundamentals are strong as ever and recovery in growth is expected in the next fiscal.
According to the UN study, one in five countries will see per capita income stagnate or decline this year, but listed India among few countries where the per capita GDP growth rate could exceed 4% level in 2020.
A prolonged weakness in global economic activity may cause significant setbacks for sustainable development, including the goals to eradicate poverty and create decent jobs for all. At the same time, pervasive inequalities and the deepening climate crisis are fuelling growing discontent in many parts of the world.