New Delhi : Supportive monetary and fiscal policies can help India achieve 8 per cent growth in the next three fiscals, but if reforms do not get further momentum then its economic “outperformance” could be short-lived, S&P Global Ratings said. It said India will have to address issues plaguing private investment, and banks will have to clean up their balance sheets, it said, adding the country lacks infrastructure.
“India has edged out China as the world’s fastest-growing large economy, despite a slowdown in global growth and tough times for many emerging markets. However, this outperformance could prove temporary if India’s reforms do not gather greater momentum,” the US-based agency said in a statement. S&P Global Ratings also projected India’s economy to accelerate to approximately 8% in the next three fiscal years even as China slips to annual growth rates of below 7 % S&P said the recent trend of strong economic growth in India could slow in the medium term if improvements in the country’s infrastructure do not pick up, reports PTI. “India will have to address issues plaguing private investment and banks will have to clean up their balance sheets.
