Amid a positive outlook, led by revival in factory output and
growth in the services sector, the Indian economy is estimated
to grow at 7.6% in FY 16 as compared with 7.2% in FY 15.
At real GDP growth of 7.6%, India would be growing faster
than many economies in the world.
While the manufacturing sector is estimated to grow at 9.5%
in FY 16, up from 5.5% a year ago, the services sector growth
was catapulted by 10.1% in trade, hotels and communication,
9.9% in the financial sector and 7.5% in public administration.
The revival of manufacturing can be attributed to a slew of
reforms by the Government in the last one year or so, including
`Make in India’. The global economies, however, did not grow in
the year 2015, and remained at the levels of 2014. One of the
main contributors was the slowdown in China, which, at 6.9%,
witnessed the least growth in the last 25 years, in 2015. Though
the fall in oil prices helped some of the developing nations,
the price drop was so steep that it even resulted in budget
deficits in some oil producing countries, such as Saudi Arabia
and Nigeria, etc. Strong dollar has placed many commoditiesimporting
countries on the defensive, with already struggling
nations such as Russia and Brazil also contributing to sluggish
recovery on the global front.