India’s GDP to grow at 7.3% in FY19, will further go up to 7.5% in FY20, says World Bank

World Bank report observed that a growth of over 8 percent will require 'continued reform and a widening of their scope' aimed at resolving issues related to credit and investment, and enhancing competitiveness of exports

PTI March 14, 2018 16:22:41 IST
India’s GDP to grow at 7.3% in FY19, will further go up to 7.5% in FY20, says World Bank

New Delhi: The World Bank on Wednesday projected India's GDP growth at 7.3 percent for the next financial year and accelerate further to 7.5 percent in 2019-20. The World Bank's biannual publication, India Development Update: India's Growth Story, expects the economy to clock a growth rate of 6.7 percent in the current fiscal ending 31 March.

The report, however, observed that a growth of over 8 percent will require "continued reform and a widening of their scope" aimed at resolving issues related to credit and investment, and enhancing competitiveness of exports.

Indias GDP to grow at 73 in FY19 will further go up to 75 in FY20 says World Bank

World Bank says India's GDP to grow 7.3% in FY19. Reuters

"The Indian economy is likely to recover from the impact of demonetisation and the GST, and growth should revert slowly to a level consistent with its proximate factors -- that is, to about 7.5 percent a year," the report said.

In November 2016, the government had scrapped high value currency notes of Rs 500 and Rs 1,000 in a bid to check black money, among others. Later, India implemented its biggest indirect tax reform -- Goods and Services Tax (GST).

Both of these initiatives had impacted the economic activities in the country in short run. India's economic growth had slipped to a three year low of 5.7 percent in April-June quarter of the current fiscal, though it recovered in the subsequent quarters.

The economy is expected to grow at 6.6 percent in the current fiscal ending 31 March, as per the second advanced estimates of the Central Statistics Office (CSO), compared to 7.1 percent in 2016-17. The earlier estimate was 6.5 percent. The Economic Survey tabled in Parliament has projected a growth rate of 7 to 7.5 percent in the 2018-19 financial year.

The World Bank report further said that accelerating the growth rate will also require continued integration into global economy. It pitches for making growth more inclusive and enhancing the effectiveness of the Indian public sector.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

UN chief calls for global ceasefire to tackle COVID-19, warns pandemic risks new conflicts
World

UN chief calls for global ceasefire to tackle COVID-19, warns pandemic risks new conflicts

Antonio Guterres said COVID-19 has raised growing questions about the effectiveness of health systems, social services, trust in institutions and systems of governance

Regulatory cobwebs threaten to scupper India's data economy: A closer look at threats, opportunities
Tech

Regulatory cobwebs threaten to scupper India's data economy: A closer look at threats, opportunities

In its attempt to extract the maximum value from the data economy, the government must resist the temptation to be overzealous in regulation.

Lebanon's government resigns amid widespread anger over last week's Beirut blast
World

Lebanon's government resigns amid widespread anger over last week's Beirut blast

In March, as the economy faltered, Lebanon defaulted on a $1.2 billion payment for foreign bonds for the first time in the country’s history