India will be the world’s fastest growing big economy in 2016, a United Nations report said. India’s economy is estimated to grow by 7.3% in 2016 and by 7.5% in 2017, marginally higher than the projected 7.2% in 2015, according to the UN World Economic Situation and Prospects 2016 report released on Friday.
It added that despite challenging global conditions, the South Asian region will witness the fastest growth in 2016 and 2017. The Indian economy makes up 70% of South Asia’s gross domestic product. The report attributed these figures to an improved macroeconomic environment and the implementation of economic reforms, aided by the slump in the price of oil, food and metals. The report added that consumer and investor confidence has risen, though the government faces difficulties in implementing wide-ranging reform agenda, and some economic indicators, like industrial production, remain volatile.
The head of the UN Economic and Social Commission for Asia and the Pacific’s south and southwest Asia office, Nagesh Kumar, said India must now “recheck fiscal efforts and raise revenues” and invest more in some social sectors.