Economy Can Hit 7 Per Cent Growth With Modest Reforms: Moody's

NEW DELHI: Ratings agency Moody's on Wednesday said India's economy can easily hit 7 per cent growth rate with modest reforms.

"We expect GDP (Gross Domestic Product) growth to hit 5.1 per cent in the three months to June. However, this is still well short of potential GDP growth, which is currently around 6 per cent, but could easily lift towards 7 per cent with some modest economic reforms," says Glenn Levine, senior economist, Moody's Analytics.

The ratings agency further said that the country under the new government was in early stages of a cyclical upturn.

Moody's further said that it expected the second quarter GDP figures due later this week to show the beginning of cyclical improvement for the Indian economy.

The risk measurement and management company pointed out that the country's new Prime Minister Narendra Modi has taken office at an opportune time when the economy should grow automatically around five per cent.

"Even without much government help, the economy should grow by around 5 per cent this year and close to 6 per cent in 2015."

Asia's third largest economy has witnessed sub-five per cent economic growth rates in over two decades time in the last two years.

Last week, even most of the top global brokerage firms such as Deutsche Bank, Barclays, Nomura and Religare have raised their growth estimates for the Indian economy for the quarter ended June 30 and FY16.

These brokerages expect India's GDP to grow at 5.6-6 per cent in April-June from the corresponding period.

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