India's economic recovery News

According to the global financial services major, India's economic recovery has peaked and growth rates are likely to get constrained in the second half of this year.

The report said that structural reforms take long time of 5-10 years to reflect in growth rate or reviving the stranded projects.

According to the global financial services major, the revival will be driven by a pick-up in capex (more public than private), urban consumption and normalisation in exports.

Moody's Investors Service on Tuesday said investment levels in India are showing early signs of recovery driven by an upturn in capital expenditure and increased public spending.

The economy is showing signs of a turnaround, albeit moderately, on the back of continued policy actions, implementation and enhanced business and consumer confidence, says a CII ASCON survey that tracks the growth of industrial and services sectors.

With the US Fed reiterating its resolve to break from the seven-year of near zero interest rates this year, Japanese brokerage Nomura on Wednesday said India does not have to worry much about its impact as a sustainable recovery is underway in the domestic economy.

India will see a gradual growth acceleration with its GDP expected to reach 5.9 percent this year and 6.3 percent in 2016, the UN said Monday while partly crediting the recovery to improved market sentiment after the new government took office and announced key reforms.

For the first four months of 2014-15 fiscal, IIP has recorded 3.3 percent growth, as against a contraction of 0.1 percent in the April-July period of 2013-14.

India`s sovereign ratings are constrained by persistently high inflation that is weighing on an otherwise promising economic recovery, Moody`s Investors Service said in a release on Thursday.