Indian economy to accelerate its growth rate

Among the emerging economies, Indian economy seems more robust. The economy is growing around 7.3 percent in 2015, which better than Chinese economy. The industrial production surprisingly posted a solid growth rate of around 10% year on year in October. The economy is expected to post a solid growth rate in 2016 and 2017, states Danske bank.  

The improvement in external and domestic balances helping the economy to expand monetary and fiscal policy. Moreover, lower oil prices, reforms that provides favorable environments to the investors,  and removing red tape supports the growth outlook of the economy. Therefore, analysts see the economy to accelerate its solid growth rate in future.

"India's current account deficit has declined markedly to about 2% of GDP and should decline further due to the sharp decline in the crude oil price. We no longer regard India as among the 'fragile' emerging markets as imbalances have been reduced markedly over the past two years", added Danske Bank.