'India to see stable growth; prospects depends on reforms'

OECD said on Thursday that annual gross domestic product growth for the ASEAN -10, China and India is forecast to average 6.5 per cent over 2015-19.

Indian economy is expected to see an average growth of 6.7 per cent over the 2015-19 period and a further boost would depend on reform plans of the government, says a report.

However, the Organisation for Economic Cooperation and Development on Thursday also said India and China face significant challenges.

"India's growth should remain stable at 6.7 per cent, before any potential boost from the new government's reform plans," the report, released at the ASEAN Business and Investment Summit in Nay Pyi Taw, said.

‘Emerging Asia’ is set for healthy growth over the medium term even as outlook for many OECD countries remains subdued, as per the grouping's latest economic outlook report for Southeast Asia, China and India.

"India's growth should be stable over 2015-19, but the prospects could change depending on the implementation of the reforms of the new Modi government," the report said.

These plans include promoting domestic and foreign investments, creating jobs, improving food security, raising standards of education and skills development, building new infrastructure, enhancing water governance and increasing the country's overall competitiveness, particularly in the manufacturing sector, it added.

Prime Minister Narendra Modi-led government came to power in May after a thumping victory in the general elections.

In October, the International Monetary Fund and the World Bank projected 5.6 per cent growth rate for India this year, citing renewed confidence in the market due to a series of economic reforms pursued by the new government.

Meanwhile, OECD on Thursday in its report said that annual gross domestic product growth for the ASEAN -10, China and India is forecast to average 6.5 per cent over 2015-19.

"Growth momentum remains robust in the 10 ASEAN countries, with economic growth averaging 5.6 per cent over 2015-19," it noted.

The members of Association of Southeast Asian Nations are Indonesia, Malaysia, the Philippines, Thailand, Vietnam, Brunei Darussalam, Singapore, Cambodia, Lao PDR and Myanmar.

However, the report said that China's growth is expected to slowdown to 6.8 per cent over 2015-19 period.      

It also noted that public sector reforms have made substantial progress in Southeast Asia, China and India.

Paris-based OECD is a grouping of about 34 countries.