newsdog Facebook

World Bank projects 7.3 percent growth rate for India in 2018

India Blooms 2018-01-10 09:08:53

New Delhi, Jan 10 (IBNS): Giving positive news to people in the country, the World Bank has projected India'a growth rate to 7.3 per cent in 2018.

In its report, the World Bank said: " India is expected to pick up to a 7.3 percent rate in fiscal year 2018/19, which begins April 1, from 6.7 percent in FY 2017/18."

Speaking on the growth rate in the South Asian region, the bank said: "Growth in the region is forecast to accelerate to 6.9 percent in 2018 from an estimated 6.5 percent in 2017."

"Consumption is expected to stay strong, exports are anticipated to recover, and investment is on track to revive as a result of policy reforms and infrastructure upgrades," read the statement.

The statement further said: "Setbacks to reform efforts, natural disasters, or an upswing in global financial volatility could slow growth."

This is assumed to be a positive side for India as the Centre in its own data released last week estimated that the country’s gross domestic product (GDP) will likely grow at 6.5 per cent during 2017-18 — a four year low.

The CSO data shows the growth  lower than the 7.1 per cent GDP growth in the previous financial year on account of slowdown in the agricultural and manufacturing output.

It says that the  advance estimate for Gross Value Added (GVA) is estimated at 6.1 per cent for 2017-18, down from 6.6 per cent in the previous financial year.

All these projections are made at a time when the country implemented major economic move in the form of Goods and Services Tax (GST) last year.

In 2016, Prime Minister Narendra Modi-led Centre had banned all old Rs.500 and Rs. 1000 currency notes.

Meanwhile, in its report, the World Bank projected 5.8 percent growth rate for neighbouring Pakistan.

"Pakistan is anticipated to accelerate to 5.8 percent in FY 2018/19, which begins July 1, from 5.5 percent in FY 2017/18," the report said.