The World Bank today forecast a growth rate of 7 point 3 per cent for India this year and 7 point 5 per cent for 2019 and 2020, and noted that the country’s economy has recovered from the effects of demonetisation and the Goods and Services Tax.
The World Bank in its twice-a-year South Asia Economic Focus report in Washington today said that growth is expected to accelerate from 6.7 in 2017 to 7.3 per cent in 2018 and to subsequently stabilise supported by a sustained recovery in private investment and private consumption.
In its report the World Bank said, India should strive to accelerate investments and exports to take advantage of the recovery in global growth.
In the India section of the report, the bank acknowledged that disruptions from demonetisation and events surrounding the implementation of GST led to a setback in economic activity and a potentially larger negative effect on the poor and vulnerable.
Looking ahead, return to business as usual and subsequent rebalancing of growth drivers towards investment could support acceleration of GDP growth to 7.4 per cent by FY 2019, it said.
Source: AIR