Raising the prospect of economic growth recovering to just under 6.5% by next financial year (2020-21), the Organisation for Economic Cooperation and Development (OECD) has forecasted Indian economy to grow 6.2% in 2020 and further to 6.4% in 2021.
The Organisation further noted that India’s monetary and fiscal policies have become accommodative as election-related uncertainties fade. As per the OECD Economic Outlook’s second edition for 2019, New Delhi’s income support scheme for farmers and good monsoon are supporting private consumption, while corporate income tax rate cut will support corporate investment.
Besides, OECD is expecting Inflation and the current account deficit to remain moderate given the relatively large spare capacity in the economy and low oil prices. However, it said that job creation remains a challenge. It also underlined that overall, India has succeeded in seizing some of the market shares lost by other countries and exports have proved relatively resilient.