A recent report by the World Economic Forum indicates that India stands in the fourth position as far as its economic growth is concerned. The other countries in the list are Djibouti, Tanzania, and Laos. The first three places are occupied by Ethiopia, Uzbekistan, and Nepal.
The World Bank’s latest edition of the Global Economic Prospects has projected the economic growth of India to be around 7.2% in the year 2017. As per the report, the global projected growth is a much lesser value at 2.7%. The GDP of Ethiopia is forecast to grow at the rate of 8.3% this year, while Uzbekistan’s GDP will grow by 7.6%. The GDP of Nepal is expected to grow at the rate of 7.5%, slightly below the figures of Uzbekistan.
The World Bank Group also indicated that the latest data reflects an acceleration in India’s GDP, as the cash shortage in the country eased and the percentage of exports saw a rise. The report also suggested that an escalation in the government spend (that includes the investment on capital foundation) has balanced out soft private investment. Additionally, the report predicted that India’s growth will accelerate to reach 7.5% the next financial year. This will be supported by policy reforms and greater domestic demand.
The World Bank report hints at the adverse effects of the demonetisation exercise that was undertaken by the Indian government towards the end of 2016. The report also stressed that the improvement in infrastructure spending, a favourable monsoon in the agrarian economy, and robust consumption have led to the growth of the nation.
Other points that stood out in the report include the containment of inflation by countries like India, Pakistan, and Bangladesh. This was primarily attributed to favourable weather conditions and lower oil prices in these countries.