Economy

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.