World Bank: India’s growth rate will rise soon

By APD writer Rishika Chauhan

NEW DELHI, Mar.15 (APD)- World Bank’s latest biannual India Development Update released on Wednesday, highlights that India’s growth rate will rise soon, however to sustain a 8% growth rate, specific measures should be followed.

According to the bank, India’s growth rate will return to 7.5% in the next two years, but to grow faster a decisive structural reform momentum would be needed so that investment and export growth are enhanced.

Since the announcement of currency demonetization in 2016 and the subsequent implementation of the goods and services tax (GST), India’s growth had slowed down.

Previous momentum was regained only in the December quarter, when growth took place at 7.2%, making it the fastest in last five quarters. The GDP data shows that the year’s growth has now increased to 6.6%.

The World Bank has projected economic growth to increase to 7.3% in 2018-19 and 7.5% in 2019-20.

In a statement, the World Bank explained, “Maintaining the hard-won macroeconomic stability, a definite and durable solution to the banking sector issues, realization of the expected growth and fiscal dividend from the GST, and regaining the momentum on an unfinished structural reform agenda are key components of this.”

“Sustaining a growth rate higher than 7.5%, and reaching an aspirational growth rate of 8% or higher will require contributions from all domestic sectors and support from the global economy,” World Bank further said.

(ASIA PACIFIC DAILY)