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India's economy to grow at 7.1% in FY20: United Nations
May-22-2019

United Nations (UN) in its World Economic Situation and Prospects (WESP) 2019 Mid-year Update report has said India's economy is projected to grow at 7.1% in current financial year (FY20) on the back of strong domestic consumption and investment. It projected the economy will grow 7% in last financial year (FY19). However, the report stated that the estimates for India reflect a downward revision from the projections made in the World Economic Situation and Prospects 2019 report released in January this year. That report had estimated that India would grow at 7.6% in FY19 and 7.4% in FY20. It must be noted that despite the downward revisions, India remains the fastest growing major economy in the world, ahead of China.

The WESP mid-year update noted that growth projections for 2019 have been revised downward in all major developed economies. Also, it mentioned the growth outlook for many developing economies has also weakened, adding that despite downward revisions, growth in India remains strong amid robust domestic demand. Moreover, it said world gross product growth is now expected to moderate from 3.0% in 2018 to 2.7% in 2019 and 2.9% in 2020, reflecting a downward revision from WESP 2019 forecast released in January. In tandem with slowing industrial production, international trade activity has visibly weakened, reflecting in part unresolved trade disputes between the United States of America and China.

Besides, the Chief of the Global Economic Monitoring Branch at the UN Department of Economic and Social Affairs (DESA), Dawn Holland said India should focus on increasing private sector involvement in investment as she underlined that the impact of demonetisation on the country's economic growth passed through relatively quickly and there is no longer a hangover from the reform on the country's current growth prospects.

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