May 29, 2017
The World Bank expects India’s economy to grow at 7.2% in the current fiscal year. The bank released its India Development Report on Monday in which it projected a positive outlook of the Indian economy, which is expected to retain its position as the fastest growing major economy in the world. The report also said that economic growth will further increase to 7.7% by FY20. The report also mentions that the Gross Domestic Product (GDP) of the country expanded by 7.9 percent in FY16 due to good monsoon which supported agricultural output and due to higher investment and urban consumption.
The India Development Report by World Bank further mentions that India remains the fastest growing economy in the world. The economic fundamentals are strong and the momentum of reform continues. It also applauded the central government’s step to implement Goods and Services Tax (GST) this fiscal year as it is expected to yield substantial growth dividends from higher efficiencies, and raise more revenues in the long term.
“India remains the fastest growing economy in the world and it will get a big boost from its approach to GST which will – reduce the cost of doing business for firms, reduce logistics costs of moving goods across states, while ensuring no loss in equity,” said Junaid Ahmad, World Bank Country Director in India.
The report indicates that inflation will stabilize, supported by stable weather and structural reforms. It further expects the fiscal and external conditions of India to remain stable. It also mentions that headline inflation has come down and the RBI met its 5 percent inflation target along the glide path. The agriculture sector will continue to fuel economic growth of the country as agricultural output is expected to grow at 4.7 percent in FY17 and stabilize at its long-term average of 2.6 in the successive years.