Strong reforms key to growth revival: CRISIL

Strong reforms key to growth revival: CRISIL
According to a PTI report, leading rating agency CRISIL reckons that strong and bold economic reforms, coupled with prudent monetary and fiscal policy may help revive growth in Asia's third biggest economy to 6.5 per cent to 7 per cent.

The Indian economy has been stuck in low gear for the past several quarters, expanding at below the 5 per cent mark, as policy uncertainty amid delayed regulatory approvals, stalled reforms and rising borrowing costs have hit investment.

However, with the more growth and investor friendly BJP party returning to power led by Narendra Modi, the country's economy is expected to pick up as business and investor sentiment rebounds and policy uncertainty eases.

In a rather one-sided election, the BJP recorded a thumping victory, winning 282 seats in the recently concluded general elections, clearly having the required numbers to form the country's next government at the centre.

However, the task of the new government won't be an easy one as it inherits a slowing economy and rising inflationary pressures. CRISIL reckons that stemming inflation, achieving fiscal consolidation, improving asset quality at state-run banks and their recapitalization, boosting debt markets and spurring manufacturing and employment would be the key to help return the country to higher growth levels.

Read more about: crisil
Story first published: Monday, May 19, 2014, 12:50 [IST]
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