World Bank recently forecasted that India’s GDP is expected to grow at 7.3% in the fiscal year 2018-19, and 7.5% in the following two years, attributing it to an upswing in consumption and investment. The bank said that India will continue to be the fastest growing major economy in the world. The domestic demand has strengthened as the benefits of structural reforms such as, the GST harmonisation and bank re-capitalisation take effect. Also, the private consumption is projected to remain robust and investment growth is expected to continue as the benefits of recent policy reforms begin to materialise and credit rebounds.
Stating his views in this regard, Ayhan Kose, Group Director, World Bank Prospects, said, “India’s recent growth numbers suggest that the economy remains robust despite temporary setbacks due to top demonetisation and GST. The fact is that Indian economy is being able to deliver growth slightly above its potential is a very good sign.”