World Bank has projected India’s growth rate at 7(point)3 per cent in 2018 and 7.5 for the next two years.
In its 2018 Global Economics Prospect released in Washington last night, the World Bank said, India has enormous growth potential compared to other emerging economies as an ambitious government undertakes comprehensive reforms.
It said, despite initial setbacks from demonetisation and Goods and Services Tax (GST), India’s economy is estimated to have grown at 6.7 per cent in 2017.
Ayhan Kose, Director, Development Prospects Group, World Bank, said India’s growth potential will be around 7 per cent for the next 10 years.
He said, in comparison with China, which is slowing, the World Bank is expecting India to gradually accelerate.
Kose said, while implementation of GST was a major turning point, recapitalisation programme for banks is really important.
For global economy, World Bank’s outlook, for the first time in many years, is better than expected with all regions seeing improved growth. However, it has warned that countries must make investments to improve their growth prospects, and the time to do that is before the next crisis hits, as it inevitably will.