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09
January 2019
 |
India
(The Total Investment & Insurance Solutions)
India's GDP is expected to grow at 7.3 per
cent in the fiscal year 2018-19, and 7.5 per cent in the following two years,
the World Bank has forecast, attributing it to an upswing in consumption and
investment.
The bank said India will continue to be the
fastest growing major economy in the world. China's economic growth is
projected to slow down to 6.2 each in 2019 and 2020 and 6 per cent in 2021,
according to the January 2019 Global Economic Prospects report released by the
World Bank on Tuesday. In 2018, the Chinese economy is estimated to have grown
by 6.5 per cent as against India's 7.3 per cent. In 2017, China with 6.9 per
cent growth was marginally ahead of India's 6.7 per cent, mainly because the
slowdown in the Indian economy due to demonetisation and implementation of the
Goods and Services Tax (GST), the report said.
"India's growth outlook is still robust.
India is still the fastest growing major economy," World Bank Prospects
Group Director Ayhan Kose told PTI in an interview. "With investment
picking up and consumption remaining strong, we expect India to grow 7.3 per
cent in the fiscal year 2018-2019, and average 7.5 per cent in 2019 and 2020.
India registered quite a bit of pick up in doing business ranking. The growth
momentum is there (in India)," Kose told.
In India, the growth has accelerated, driven
by an upswing in consumption, and investment growth has firmed as the effects
of temporary factors wane, the World Bank said in its latest report. Domestic
demand has strengthened as the benefits of structural reforms such as the Goods
and Services Tax (GST) harmonisation and bank recapitalisation take effect.
"India's growth accelerated to an estimated 7.3 per cent in FY2018/19
(April to March) as economic activity continued to recover with strong domestic
demand.
While investment continued to strengthen amid
the GST harmonisation and a rebound of credit growth, consumption remained the
major contributor to growth," the World Bank said. According to the
report, India's GDP is forecast to grow by 7.3 per cent in FY2018/19 and 7.5
per cent thereafter, in line with June forecasts. Private consumption is
projected to remain robust and investment growth is expected to continue as the
benefits of recent policy reforms begin to materialise and credit rebounds.
Strong domestic demand is envisioned to widen the current account deficit to 2.6
per cent of GDP next year. Inflation is projected to rise somewhat above the
midpoint of the Reserve Bank of India's target range of 2 to 6 per cent, mainly
owing to energy and food prices, the bank said.
It
said in India the recent introduction of the GST and steps toward
demonetisation are expected to encourage a shift from the informal to the
formal sector. "India's recent growth numbers suggest that the economy
remains robust despite temporary setbacks (due top demonetisation and
GST)," Kose said. The World Bank's estimate suggest that India's potential
growth rate is around seven per cent, and is expected to remain around seven
per cent, he said in response to a question. "The fact is that Indian
economy is being able to deliver growth slightly above its potential is a very
good sign,” he added. Refraining from commenting on the economic performance of
the Modi Government that too in an election year, the World Bank official said
growth performance of India as compared to other emerging markets has been
quite impressive. "India's growth performance has been quite impressive.
Year after year it has delivered strong numbers around its potential
growth," he said.The Total
Investment & Insurance Solutions
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