India’s robust GDP growth to continue in 2019, says CII report
Identifies seven key drivers for growth
India’s robust GDP growth will continue in 2019 driven by sectors such as services, infrastructure and better demand conditions arising out of election spending, according a report.
The Confederation of Indian Industry (CII), in its ‘Growth Outlook for 2019’ report, stated that despite 2018 being filled with external vulnerabilities arising out of higher oil prices, trade wars between major global trading partners and US monetary tightening, Indian economy outshined as the world’s fastest growing major economy in 2018.
Better demand conditions, settled GST implementation, capacity expansion resulting from growing investments in infrastructure and continuing positive effects of the reform policies undertaken and improved credit off-take, especially in services sector at 24 per cent, will sustain the robust GDP growth in the range of 7.5 per cent in 2019, CII Director General Chandrajit Banerjee said in a statement.
Drivers for growth
According to the report, there are seven key drivers for growth including GST, Insolvency and Bankruptcy Code, ease of doing business, agriculture, credit flow, oil price and infrastructure.
The report suggested that the GST Council should consider extending GST to fuels, real estate, electricity and alcohol to drive growth.
While IBC is a welcome move, additional benches for National Company Law Tribunal across India should be set up for easier and faster exit of distressed businesses.
The report also pointed out that India should continue to guard against the risks of higher oil prices by increasing domestic oil production, providing a special window for oil marketing companies to procure oil and stepping up diplomacy with the US to continue to secure purchase from Iran.
This will also help in effective exchange rate management, the report added.
Source: THE HINDU BUSINESSLINE