India: Economy

Economic growth in India is expected to stay high in Fiscal Year 2016 (ending 31 March 2017) on the strength of robust consumer demand from a general increase in wages that offsets a slowdown in investment. Inflation and the current account deficit are broadly in line with earlier forecasts. The enactment of legislation to allow a national value-added tax was a milestone reform that will create a much more integrated and productive economy. Ongoing efforts to restructure bank balance sheets to revive lending and reduce excessive leverage at large corporations is setting the stage for a recovery in investment spending likely to drive growth higher in FY2017. Read more from Asian Development Outlook 2016 Update


Economic forecasts for South Asian countries

Country 2016 2017
Afghanistan 2.0 3.0
Bangladesh 7.1 6.9
Bhutan 6.4 6.1
India 7.4 7.8
Maldives 3.5 3.9
Nepal 0.8 4.8
Pakistan 4.7 5.2
Sri Lanka 5.0 5.5
Average 6.9 7.3
Country 2016 2017
Afghanistan 4.5 6.0
Bangladesh 5.9 6.1
Bhutan 3.3 4.6
India 5.4 5.8
Maldives 1.2 1.4
Nepal 9.9 8.5
Pakistan 2.9 4.7
Sri Lanka 4.5 5.0
Average 5.2 5.7
Country 2016 2017
Afghanistan 4.5 1.1
Bangladesh 1.7 1.0
Bhutan -29.9 -27.0
India -1.4 -1.8
Maldives -10.1 -10.0
Nepal 6.2 4.6
Pakistan -0.9 -1.6
Sri Lanka -2.0 -2.0
Average -1.1 -1.6

Source: Asian Development Outlook 2016 Update