India's economic growth rate, which has dropped to sub five per cent level, is expected to gain momentum on the back of reforms, the PM Narendra Modi-led government said today.
"After stabilising at a low level of around 5 per cent, growth in the Indian economy is expected to pick up in the coming quarters supported by improved implementation and structural reforms," according to an official statement.
It was issued after a meeting between Finance Minister Arun Jaitley and Chancellor of the Exchequer UK George Osborne.
India's economy slowed to below five per cent in 2012-13 and 2013-14 due to global factors and slowdown in domestic economic activities.
The Narendra Modi led government, which assumed power in late May, has bolstered investors' confidence as reflected in the stock market.
The economic policies of the new government are likely to be reflected in the Union Budget to be presented by Jaitley on Thursday, amid high fiscal deficit and stubborn inflation.
The statement further said the two countries are encouraged by signs of recovery in the global economy in recent months.
In the UK, the economy is growing, employment is strong and the deficit is falling, but risks remain and the government will continue to deliver its economic plan, the statement added.
The two leaders further said both the UK and India share a common commitment to take the necessary steps to support growth and jobs, ensure financial stability and restore fiscal sustainability.
"In an increasingly globalised world, we cannot tackle these challenges alone. We will continue to work closely together and are committed to multilateral co-operation through the G20 and International Financial Institutions" the statement added.