CHENNAI: Global credit rating agency Moody's Investors Service and its Indian affiliate ICRA recently said India will remain one of the fastest growing major economies globally in 2017 and the Government will likely achieve its fiscal deficit target of 3.5 per cent of GDP for the current fiscal year ending March 31.
In a statement, Moody's said India will be one of the fastest growing major economies in the world in 2017 although gross domestic product (GDP) growth will moderate in the first half of the year as the economy adjusts after demonetisation.
ICRA expects the Country's growth of gross value added at basic prices to remain healthy in 2017 although such growth will ease somewhat to about 6.6 per cent from around 7 per cent in 2016, with a likely pick-up in the second half of 2017.
"Even after the currency in circulation is replenished, we expect India's economic growth will stabilise with a lag while remaining strong," said Aditi Nayar, an ICRA Principal Economist.
"The adjustment and recovery period could stretch to as much as 2-3 quarters for certain sectors," Nayar added. According to ICRA, the focus on digital transactions and the introduction of a goods and services tax (GST) will likely reduce the competitiveness of the unorganised sector.
"Nevertheless, economic and institutional reforms already introduced and potentially forthcoming, continue to offer a reasonable expectation that India's growth will outperform that of its similarly rated peers over the medium term, and that the Country will achieve further improvements in its macroeconomic and institutional profile," said William Foster, a Moody's Vice President and Senior Credit Officer.
Source: Dailyshippingtimes.com