World Bank Retains India’s Growth Rate  At 7.5% For FY20
General economy India (Photographer: Brent Lewin/Bloomberg)

World Bank Retains India’s Growth Rate At 7.5% For FY20

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Indian economy will grow 7.5 percent in the next three years supported by robust investment and private consumption, according to the World Bank's projection.

India is estimated to have grown 7.2 percent in fiscal year 2018-19, said the bank in its Global Economic Prospects report. A slowdown in government consumption was offset by solid investment, which benefitted from public infrastructure spending.

As against a growth rate of 6.6 percent in 2018, China's growth rate in 2019 is projected to have dropped to 6.2 percent and then subsequently to 6.1 percent in 2020 and 6 percent in 2021, the bank said.

India will continue to retain the position of being the fastest-growing major economy. And by 2021, its growth rate is projected to be 1.5 percent more than China's 6 percent.

Growth in India is projected at 7.5 percent in fiscal year ending 2020, unchanged from the previous forecast. The growth rate is forecast to stay at this pace through the next two fiscal years, said the report.

Private consumption and investment will benefit from strengthening credit growth amid more accommodative monetary policy, with inflation having fallen below the Reserve Bank of India’s target.
World Bank’s Global Economic Prospects Report

Also read: World Bank Cuts Global Outlook as Trade Tumbles to Decade Low

Support from delays in planned fiscal consolidation at the central level should partially offset the effects of political uncertainty around elections in FY19, it said.

Also read: In Charts: Who Is Hurting Most From India’s High Unemployment?

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