Indian Economy To Outpace Its Peers Despite Demonetisation Hurdle: Moody’s & ICRA
ICRA expects Indian economy to pick-up in second half of 2017.
India’s competitive advantage over other trade-reliant economies and the government’s reforms drive will ensure that it remains one of the fastest growing economies in 2017, according to Moody’s Investors Service and its Indian affiliate, ICRA Ltd.
ICRA believes India’s growth domestic product (GDP) will remain “healthy” at about 6.6 percent in 2017, but lower than the seven percent growth projected for last year, as the economy adjusts to the surprise cash crunch in the system.
The ratings agency says the focus on digital transactions and the introduction of the Goods and Services Tax is likely to reduce the “competitiveness” of the unorganised sector.
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...William Foster, Senior Credit Officer and Vice-President at Moody’s
Moody's and ICRA point out that in an environment of lacklustre global trade, and with economies the world over growing increasingly protectionist, India's very large domestic markets provide a relative competitive advantage when compared to smaller and more trade-reliant economies.