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India GDP Data: There is good news for the Indian economy. In the year 2022, India’s GDP has been more than 3.5 trillion dollars and for the coming five years, the Indian economy is going to be the fastest growing economy among the countries of the G20 group. American rating agency Moody’s has given this information in its research report.
Moody’s has also mentioned the challenges facing the Indian economy in its report. He has said in his report that the lateness of the bureaucracy may have to bear the brunt. This may lead to bottlenecks in foreign investment due to delay in obtaining license, delay in process of permission to start business as well as project delay, thereby reducing India’s attractiveness as a Foreign Direct Investment (FDI) destination. . It has been said in the report that delay in adopting the reform process and obstruction in policy making can affect investment.
India’s top bureaucracy involved in the decision-making process could reduce India’s attractiveness as an FDI destination compared to other developing countries in the region such as Indonesia and Vietnam, Moody’s Investor Service said in the report. However, the report said that India’s large young and educated workforce, increasing number of small families and urbanization will drive demand for housing, cement and new cars. Apart from this, increasing government spending on infrastructure sector will increase investment in renewable energy due to steel and cement business and net-zero emissions.
According to the report, the manufacturing and infrastructure sector will grow at the rate of 3 to 12 percent. Despite this, India’s capacity will remain behind that of China till the year 2030. Moody’s said that India’s limited liberal approach to regional trade agreements will also have an impact on attracting foreign investment.
It has been said in the report that the government’s efforts to crack down on corruption, organize economic activities and improve tax collection and administrative service are encouraging, but the risks regarding the effect of these efforts have also increased.
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