The World Bank has stated in its India Economic update that India’s economy will grow at 6.7 % this financial year and has predicted a growth rate of 7.3% for 2018-19 and 7.5% in 2019-20.
India has become a shining star on the global stage and the world sees great potential in India and its economy. The World has high hopes from the Indian economy, now, especially with the push of ease of doing business.
“The key takeaways about the Indian economy are that it is steadily growing, and it is growth where volatility has significantly decreased,” Junaid Ahmed, World Bank Country Director of India said at a press conference. “Another factor is that growth is not being led any single factor, and is instead being driven by a number of factors such as exports, consumption, and investment.”
The World is impressed with the resilience of the Indian economy which has taken the shocks of De-Monetization and GST in its stride and has still managed a reasonable rate of growth.
India has fantastic promise and its growth is steadily accelerating said Poonam Gupta, Lead Economist with the World Bank, making it a fast growing economy and a lucrative investment destination for the world.
From 1970 to 1990 India’s economic growth rate was 4.4%, which accelerated to 5.4% from 1991 to 2003. There was an acceleration of 8.8% between 2004-2008 and the growth rate settled to 7.1% from 2009 to 2017, according to a World Bank report.
Revival in private investments and exports would be crucial factors in driving the growth rate to stay at 8% according to Poonam Gupta, who is also the author of this report.
Structural reforms would be crucial and it is of prime importance that India not compromise on its fiscal discipline in the greed for growth, according to Ms.Gupta.
Reducing policy uncertainty and creating a conducive business environment with revival of private investment would be crucial if India wants to touch the growth rate of 8%.
