India’s economy has the resilience to overcome the current slowdown and return to high growth trajectory, said Prime Minister Narendra Modi. He reassured investors about their long-term bets on Asia’s third-biggest economy.
“India has witnessed such ups and downs previously as well,” Modi told business leaders in New Delhi. “And each time, we have emerged even stronger. That’s why even now India will forge its path ahead with firmer determination and confidence.”
The country’s economy grew five percent year-on-year between April and June, its weakest pace since 2013, as consumer demand and government spending slowed amid global trade conflicts. This prompted a number of rate cuts by the central bank, with the government introducing several measures (including a sharp cut in corporate taxes) to boost growth.
According to Modi, his government wants to formalize and modernize the country’s economy. A massive amount of money will be spent in the coming years on building infrastructure and rural economy, he said, explaining that will help to achieve the ambitious $5 trillion target by 2024.
Goldman Sachs projected this month that the Indian economy will rebound in 2020 as global conditions are set to improve. It also said that growth will fall to 5.1 percent this year from roughly seven percent annually in 2017 and 2018.
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