India To Clock Avg Annual Growth Of 7.1 Pct In 2015-19: EIU

NEW YORK: The Indian economy is expected to grow at an average annual rate of 7.1 per cent through 2019, but reform measures announced by the government are "no more than incremental improvements", the Economist Intelligence Unit (EIU) has said.

EIU, which is the research-arm of the London-based publication, The Economist, credited strengthening of the economy to lower oil prices, saying this has eased structural problems associated with high inflation.

"In its first full Budget the government pledged more money for much-needed roads and railways and cut some red tape for entrepreneurs. It relaxed slightly some fiscal deficit targets and increased spending on welfare.

All of these moves are positive, but are no more than incremental improvements. Owing to a new government methodology for calculating GDP, we now expect growth of 7.1 per cent a year in 2015-19, a full percentage point higher than earlier," the EIU global forecast report said.
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