New Delhi, May 28 (KNN) The new government is expected to cut the red tape and simplify the number of procedures that are required to do business in India, global financial services major Goldman Sachs has said.

“The budget to be presented within a few weeks will be an important gauge. There is expectation of a gradual move towards medium term fiscal consolidation, a prioritisation of capital spending over subsidies, and a push towards implementing the GST,” it said.

A clear mandate for the Bharatiya Janata Party (BJP) has rekindled hope for structural reforms and better investment climate and the country’s growth is likely to accelerate to 6.5 per cent in FY16, a Goldman Sachs report said.

“The hope for structural reform which can increase India’s growth potential stems partly from the track record of the new Prime Minister-elect, Narendra Modi, who was the chief minister of one of India's fastest growing states, Gujarat, for 12 years, and partly from the BJP’s election campaign platform of economic development,” Goldman Sachs said.
  
According to Goldman Sachs, India’s gross domestic product (GDP) growth is likely to increase from 4.6 per cent in FY14 to 6.5 per cent in FY16, driven by an improvement in investment demand and stronger exports. (KNN Bureau)