The World bank says that the Growth Rate will be 7.3% this year and it will likely to grow to 7.5% in 2019 and 2020 as the country is recovering from the effect of demonetisation and Goods and Service Tax.
The World bank said in a twice-a-year South Asia Economic Focus that, “Growth is expected to accelerate from 6.7 in 2017 to 7.3 percent in 2018 and to subsequently stabilise supported by a sustained recovery in private investment and private consumption”.
The report said that the India is already recovering in the global growth market by accelerating investment and exports taking as an advantage.
The bank further added, “Every month, the work force increases by 1.3 million people and India must create 8.1 million jobs a year to maintain its employment rate, which has been declining based on employment data analysed from 2005 to 2015, largely due to women leaving the job market”.
The Indian section of the report projected that implementation of GST and demonetisation affected the economic activity and hence proves to be negative mainly on the poor and vulnerable section of the society.
However, the IMF projected the growth rate to be 7.1% in 2016 and further to 5.7% in 2017 stating that the country is facing a major disruption related to demonetisation and GST implementation.
Though the World Bank projected that the growth rate will be 7.3% this year but if the internal shortcomings are not met, then the private investment will affect the India’s potential growth.