UN Raises Projections For India's Growth, Making It The Fastest-Growing Economy

United Nations: The UN has now raised its projections for the Indian economy's growth by 1.7 percent to 7.6 percent and by 1.4 percent to 7.7 percent from the estimates it made.

The Mid-Year Update to the World Economic Situation and Prospects 2015 puts India on the trajectory to be the world's fastest-growing large economy, outpacing China, the previous champion in the development stakes.

The original report by the UN Development Policy and Analysis Division had estimated India's gross domestic product growth rate at 5.9 percent and 6.3. They were behind China's growth rate projection at 7 percent and 6.8 in the January report, which remain unchanged.

The UN update matches the projections of other international institutions that have put India's growth rate as the fastest, and all of whom have also revised estimates for India upward.

The UN Economic and Social Commission for Asia and the Pacific released a report that said Indian economy would grow by 8.1 percent this year and 8.2, which are the highest projections made by international institutions.

Ingo Pitterle, a UNDESA Economic Affairs Officer and India expert, told IANS in an interview, that with "a return to a high degree of macro-economic stability," India is winning the confidence of investors and the international community.

"Overall, I think the authorities in India have done a very good job over the past two years and this is actually reflected in some indicators," Pitterle said. "In 2013 India was group grouped together with Turkey, South Africa, Indonesia and Brazil, and considered a fragile economy.

"And now you look at the same variables, today they look very different. When you look at the currencies the story is India's is the only currency that has held up well here, which is a sign of confidence by investors, by the international community, in the Indian economy."

While the rupee has come down by about 9 percent over the past year, it has done better than the currencies of most other countries.

Referring to India's economic policies, Pitterle said: "The changes that are being made are all going in the right direction, both by the government and by the central bank."
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