Deutsche Bank sees India's GDP growth at 7.8 per cent next year

Singapore: Deutsche Bank sees India's gross domestic product growth at 7.8 per cent in 2017, up from this year's 7.5 per cent, noting that the economy seems to have bottomed out.

"We see an economy that looks like it has bottomed out... some indicators have been improving in the last 18 months... may be it has reached the bottom," said Michael Spencer, the German Bank's Chief Economist, Asia Pacific.

But for this year, the growth is flattish, forecast at 7.5 per cent, the same as last year. India's economic challenges includes the building of judicial and legal systems, especially to settle commercial disputes for businesses.

Speaking to reporters during the bank's annual Asia Conference yesterday, Spencer said that Indian banks' efforts to recapitalise and improve balance sheets while sorting out non-performing loans.

Overall, India remains the world's fastest growing economy, ahead of China's 6.7 per cent forecast for 2017 and 2016, down from 6.9 per cent in 2015, according to data released by DB.

It has forecast an improving economy of the combined emerging markets in Asia at 6.2 per cent growth in 2017 as to 6.0 per cent this year and 6.2 per cent recorded in 2015. The bank sees global economy growing at 3.6 per cent in 2017, up from 3.0 per cent this year and 3.1 per cent in 2015.