Indian economy likely to grow by 7.2% in 2018: UN report

Indian economy is likely to grow by 7(point)2 per cent in 2018 and go up further to 7(point)4 per cent in the following year on the back of strong private consumption, public investment and the ongoing structural reforms, says a UN report.

The 'World Economic Situation and Prospects 2018' report unveiled last night by United Nations Department of Economic and Social Affairs (UN DESA) said overall, economic outlook for South Asia is seen largely favourable and steady for the short term, notwithstanding significant medium-term challenges.

On India, the report



has projected a positive outlook despite the slowdown early this year and the lingering effects of demonetisation. The UN DESA report said the GDP growth is projected to accelerate from 6.7 per cent in 2017 to 7.2 per cent in 2018 and 7.4 per cent in 2019.

NR Bhanumurthy, Professor, National Institute of Public Finance and Policy told reporters while presenting the report in New Delhi that though the credit growth is subdued despite monetary easing, but bank recapitalisation and the Indian Bankruptcy Code (IBC) have the potential to revive credit growth.