India On 9% Growth From Next Year: S&P

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India is on way to its earlier growth path of 9% from next year, if key reforms are continued, as the country is less impacted by the global economic crisis compared to other countries, suggested Dharmakirti Joshi, principal economist of CRISIL in a guest opinion article published by Standard & Poor's Ratings Services.

India proved less insecure than some other economies; also, its financial sector, compared to other advanced economies, was fairly healthy. This yielded fruitful results to the stimulus packages and encouraged recovery. So, it would soon regain its 9% growth momentum and sustain it next year if it speeded up reforms of taxation, education, foreign investment regulations and such others.

Joshi wrote that India's large, young and growing population, the rising income of the middle class along with the savings rate could support domestic demand and other external stimuli. The article added that the country had great opportunities than advanced economies to address its constraints and create a prosperous new economy.

Joshi said that the global crisis led to a fallout in many advanced economies and reduced financial leverage whereas for India, the fundamentals remained strong. He added that achieving 9% growth was not a challenge, but sustaining it would be.

The report felt that India could improve its investment climate, productivity and domestic demand to balance the impact of weak performances of advanced economies, with the help of reforms. It also suggested that immediate policy action was to be taken regarding the country's high debt and deficits, streamlining the tax system through implementation of GST replacing indirect taxation, amending labour laws and reforming the financial sector.

(Market News Provided by RTTNews)