QNB Group has published its India Economic Insight 2014. The report examined recent developments and the outlook for the Indian economy and the potentially positive impact of the Premier Narendra Modi administration’s reform agenda.
According to the report, the implementation of Modi’s reform agenda is expected to unleash India’s growth potential; real GDP growth is forecast to accelerate to 6.3 percent in 2015/16 and 6.8 percent in 2016/17 as reforms start to pay dividends
The Modi administration has identified a number of priority areas for reforms including phasing out food and energy subsidies; easing land acquisition laws; reviving the power sector; introducing a uniform federal sales tax and reforming the labor market.
The majority of the reforms are projected to be implemented during the 2015/16 budget, thus starting to pay dividends over the next two years by increasing investments in the economy.
CPI inflation is forecast to reach the target set by the Reserve Bank of India (RBI) of 6.0 percent by January 2016 on continued tight monetary policy and favorable external conditions.
Labor market reforms are expected to reduce inflation by increasing labor force participation and lowering wage inflationary pressures.
Falling international oil prices and a good monsoon season are likely to moderate energy and food price inflation (comprising half of the CPI basket) in the short term.
The current account deficit is projected to decline to 1.1 percent of GDP by 2016/17 on further rupee depreciation and tighter fiscal policy.
The implementation of reforms is expected to attract additional foreign investments, implying that the financial account is likely to enjoy a healthy surplus.
The accumulation of international reserves is projected to rise to 7.9 months of import cover by end-March 2017, supported by smaller current account deficits and larger net capital inflows.
Double-digit growth in assets, loans and deposits is expected to continue at least until 2016/17, reflecting further banking penetration, higher economic activity and reduced corporate deleveraging.
Lending growth is expected to rebound and NPLs to fall in 2016/17 as structural reforms begin to materialize and banks’ balance sheets are cleaned up
Deposit are expected to continue growing robustly, despite the slowdown in inflation driven by a high savings rate and the government’s financial inclusion initiative
Other recent QNB Economic Insight reports include China, Indonesia, Jordan, Kingdom of Saudi Arabia, Kuwait, Oman, Qatar and UAE are available on the QNB Group website.
QNB Group operates in more than 26 countries in Asia, Europe, the Middle East and North Africa and its economic reports leverage its knowledge of these markets to provided added value for its clients and counterparties.
India labor market reforms likely to reduce inflation
India labor market reforms likely to reduce inflation
Saudi Arabia ranks 2nd globally in digital government, World Bank 2025 index shows
WASHINGTON: Saudi Arabia has achieved a historic milestone by securing second place worldwide in the 2025 GovTech Maturity Index released by the World Bank.
The announcement was made on Thursday during a press conference in Washington, DC, which evaluated 197 countries.
The Kingdom excelled across all sub-indicators, earning a 99.64 percent overall score and placing it in the “Very Advanced” category.
It achieved a score of 99.92 percent in the Core Government Systems Index, 99.90 percent in the Public Service Delivery Index, 99.30 percent in the Digital Citizen Engagement Index, and 99.50 percent in the Government Digital Transformation Enablers Index, reflecting some of the highest global scores.
This includes outstanding performance in digital infrastructure, core government systems, digital service delivery, and citizen engagement, among the highest globally.
Ahmed bin Mohammed Al-Suwaiyan, governor of the Digital Government Authority, attributed this achievement to the unwavering support of the Saudi leadership, strong intergovernmental collaboration, and effective public-private partnerships.
He highlighted national efforts over recent years to re-engineer government services and build an advanced digital infrastructure, which enabled Saudi Arabia to reach this global standing.
Al-Suwaiyan emphasized that the Digital Government Authority continues to drive innovation and enhance the quality of digital services, in line with Saudi Vision 2030, supporting the national economy and consolidating the Kingdom’s transformation goals.
The 2025 GTMI data reflects Saudi Arabia’s excellence across key areas, including near-perfect scores in core government systems, public service delivery, digital citizen engagement, and government digital transformation enablers. This balanced performance places the Kingdom firmly in the “Grade A” classification for very advanced countries, demonstrating the maturity of its digital government ecosystem.
Saudi Arabia’s progress in the index has been remarkable: from 49th place in the 2020 edition, to third in 2022, and now second in 2025, confirming its status as a global leader in digital transformation and innovation.
The achievement also reflects the Kingdom’s focus on putting people at the center of digital transformation, enhancing user experience, improving government efficiency, and integrating artificial intelligence and emerging technologies across public services.
