Jakarta – India maintains high economic growth despite the current global downturn. The report for the first quarter of 2015 said India's economic growth was the second highest after China at 6.1%.
The Indian economy, led by Prime Minister Narendra Modi since 2014, is not running smoothly. Right at the beginning of his reign he was confronted with political problems. However, these various problems can be overcome in a short time.
Modi then introduced various measures to promote economic activity. For example, consolidating the state budget, reducing unsettling measures and improving approval procedures.
“This is the reason why rating agencies give India an investment grade rating,” said David Sumual, chief economist at BCA Bank, in Jakarta on Friday (8/7/2015).
Not only that, India is also able to control inflation and external debt, improve current account deficit (CAD) through various measures and increase foreign exchange reserves.
“One of the measures to improve the CAD is to stop gold imports. Because the gold consumption of Indian citizens is high. That’s why it has a big impact,” he explained.
This then leads to investors coming to India. The capital was invested in sufficiently large amounts so that it was able to significantly move the real sector compared to previous years.
“Investors are starting to go there because they are seen as successful in implementing structural reforms,” David said.
Given these conditions, India could be a reference for the Indonesian government as it pursues higher economic growth. In its current situation, the government is on the right track. But you have to wait for some time to see the effect.
“India can be an example for the government to boost its economy,” said David.
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