Return Of 'Feel Good Factor' For Indian Economy


NEW DELHI: Recent reviews of global institutions and the prevailing investor confidence suggest a striking change in the perception about the Indian economy cover the past year. Yet, some crucial agenda remains for Prime Minister Narendra Modi's government as it enters its second year.

IANS spoke to a host of stakeholders and analysts over the past week and this is report card on the overall performance of the government since it was inaugurated on May 26 last year under Modi after a dramatic win for his Bharatiya Janata Party (BJP) in the national elections. It gave India a single-party majority after some 30 years.

Since May 16 last year, when the elections results were declared and it became evident that the next government will be under Modi -- who has been pro-business and an investors favourite -- the stock markets have soared, with a key index now up some 17 per cent, after touching an all-time high in March.

There were improvements in other parameters of the economy as well, notably on inflation that is now at historically-low levels, even as the rupee did not fall as much as other currencies against the dollar.

Albeit in spurts, there emerged some green shoots, even as reform-oriented decisions came in regular doses. (See Accompanying Box on 25 Achievements, 25 Challenges).

All this led to many global institutions like the World Bank, International Monetary Fund, Asian Development Bank and some UN institutions to upgrade India's growth forecast to some 7.5-8 per cent, calling it the fastest expanding globally, surpassing China.
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Source: IANS