<p>India growth story received an impetus today when rating agency Moody's said it will grow at a strong pace of 7.5 per cent in 2015-16, the highest among G20 economies, helped by the reforms drive and lower oil prices.<br /></p>.<p>"We forecast strong growth in India... at 7.5 per cent in 2015-16, the highest among the G20 economies. Lower oil prices will reinforce gradual growth-enhancing reforms to support robust economic activity over the forecast period," Moody's Investors Service said, in a report.<br /><br />At a time of shifting global investment flows, India benefits from reduced external imbalances, it said.<br /><br />"We expect a broadly balanced current account, for the first time in 10 years, thanks to lower energy import bill and restrictions in gold imports," Moody's said.<br /><br />It said India would be a major beneficiary of softer oil prices among the G20 economies as the country is a major crude importer.<br /><br />G20 is a group of 20 developing and industrialised economies, which accounts for 85 per cent of the world's economic output.<br /><br />Furthermore, the 'Make-in-India' campaign to boost domestic manufacturing and other reforms measures would bring in higher investment and boost growth, the rating agency said.<br /><br />"If implemented as intended, these reforms and the wide support for business-friendly policies will help achieve higher investment growth than in 2013-14," Moody's said.<br /><br />It said the targeting of inflation by the Reserve Bank (RBI) would ensure that higher inflation on food products does not spill onto other goods, services and wages.<br /><br />"We forecast that ongoing moderate inflation will enable better planning of investment. Lower inflation will also raise real incomes, profits and overall GDP growth," it said.<br />According to the road map, RBI intends to lower retail inflation to 6 per cent by January 2016 and 4 per cent (+/- 2 per cent) thereafter.</p>
<p>India growth story received an impetus today when rating agency Moody's said it will grow at a strong pace of 7.5 per cent in 2015-16, the highest among G20 economies, helped by the reforms drive and lower oil prices.<br /></p>.<p>"We forecast strong growth in India... at 7.5 per cent in 2015-16, the highest among the G20 economies. Lower oil prices will reinforce gradual growth-enhancing reforms to support robust economic activity over the forecast period," Moody's Investors Service said, in a report.<br /><br />At a time of shifting global investment flows, India benefits from reduced external imbalances, it said.<br /><br />"We expect a broadly balanced current account, for the first time in 10 years, thanks to lower energy import bill and restrictions in gold imports," Moody's said.<br /><br />It said India would be a major beneficiary of softer oil prices among the G20 economies as the country is a major crude importer.<br /><br />G20 is a group of 20 developing and industrialised economies, which accounts for 85 per cent of the world's economic output.<br /><br />Furthermore, the 'Make-in-India' campaign to boost domestic manufacturing and other reforms measures would bring in higher investment and boost growth, the rating agency said.<br /><br />"If implemented as intended, these reforms and the wide support for business-friendly policies will help achieve higher investment growth than in 2013-14," Moody's said.<br /><br />It said the targeting of inflation by the Reserve Bank (RBI) would ensure that higher inflation on food products does not spill onto other goods, services and wages.<br /><br />"We forecast that ongoing moderate inflation will enable better planning of investment. Lower inflation will also raise real incomes, profits and overall GDP growth," it said.<br />According to the road map, RBI intends to lower retail inflation to 6 per cent by January 2016 and 4 per cent (+/- 2 per cent) thereafter.</p>