"Despite temporary disruptions from the demonetization policy, economic conditions in India remain robust, underpinned by sound fiscal and monetary policies and the implementation of key domestic reforms. This marks a notable acceleration compared to just 2.3 per cent in 2016.The report identifies a tentative recovery in world industrial production, along with reviving global trade, driven primarily by rising import demand from East Asia.Assistant Secretary-General for Economic Development in the UN Department of Economic and Social Affairs Lenni Montiel underscored the "need to reinvigorate global commitments to international policy coordination to achieve a balanced and sustained revival of global growth, ensuring that no regions are left behind. "According to the report, underpinning global economic recovery is firmer growth in many developed economies and economies in transition, with East and South Asia remaining the world's most dynamic regions, benefiting from robust domestic demand and supportive macroeconomic policies.It said more efforts are needed to foster an environment that will accelerate medium term growth and tackle poverty through policies that address inequalities in income and opportunity. The report points to a combination of short-term policies to support consumption among the most deprived and longer-term policies such as improving access to healthcare and education and investment in rural infrastructure.The report states that inflation dynamics in developed economies have reached a turning point, and risks of prolonged deflation have largely dissipated. By contrast, inflationary pressures have eased in many large emerging markets, allowing interest rates to come down.It further stresses heightened uncertainty over international policy, which will hinder a strong rebound in private investment globally.

Source: Times of India May 16, 2017 15:00 UTC