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World Bank on Indian economic growth rate: Top 10 things to note

Sun January 10 2016, 8:35 am
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    In its report, World Bank says Indian economic growth rate has made it the global growth champion and that its GDP is set to increase by 7.8 percent - more than a percentage point higher than China's. However, to put things in perspective, the World Bank report released Thursday has cut economic growth rate in India from the 7.9 projected last June - the World Bank marginally reduced India's growth rate – 0.2 per cent in 2015 and 0.1 per cent in both 2016 and 2017.(Image Source: Reuters)
    Here are top 10 points to note:

  • world bank, indian economy, world bank on indian economy, indian economy world bank, economic growth, indian economic growth

    1. World Bank, in its Global Economic Prospect report, India, the dominant economy in Asia, is projected to grow by a robust 7.8 per cent this year and 7.9 per cent in the next two years. (Image Source: Reuters)

  • world bank, indian economy, world bank on indian economy, indian economy world bank, economic growth, indian economic growth

    2. The report recognised India's resilience saying, "Compared to most other major developing countries, India is well positioned to withstand near-term headwinds and volatility in global financial markets due to reduced external vulnerabilities, a strengthening domestic business cycle, and a supportive policy environment." (Image Source: Reuters)

  • world bank, indian economy, world bank on indian economy, indian economy world bank, economic growth, indian economic growth

    3. However, it also drew attention to the dark clouds overhanging the reform process. "In India, progress in reforms is not assured as the upper house of parliament, which the ruling party does not control, has the power to block the government's legislative agenda," the report said. "A failure to pass the goods and services tax (GST) could hamper the government's ability to ramp up spending on infrastructure needs and preserve the status quo of fragmented domestic markets." (Image Source: Reuters)

  • world bank, indian economy, world bank on indian economy, indian economy world bank, economic growth, indian economic growth

    4. "Slow progress on land reforms could add to investment delays," it added. "And private investment growth may be unable to build further momentum. The financing of public-private partnerships also remains a challenge." (Image Source: Reuters)

  • world bank, indian economy, world bank on indian economy, indian economy world bank, economic growth, indian economic growth

    5. The report also referred to another area of concern, the slowdown in industrial production. Both the services and manufacturing Purchasing Managers' Indices (PMIs) have softened, it said. The PMI fell from 54.5 for December 2014 to 49.15 last month. (Image Source: Reuters)

  • world bank, indian economy, world bank on indian economy, indian economy world bank, economic growth, indian economic growth

    6. On the bright side, the report said, "The investment cycle is gradually picking up, led by a government efforts to boost investment in infrastructure, particularly roads, railways and urban infrastructure." It added that India's currency and stock markets weathered the volatility in the global financial markets last year. Sensex, a key Indian stock market index ended 2015 up 1.08 percent. (Image Source: Reuters)

  • world bank, indian economy, world bank on indian economy, indian economy world bank, economic growth, indian economic growth

    1. Budget 2016: In his pre-Budget message on Finance Ministry's YouTube channel, Jayant Sinha said the Budget will be forward-looking "that will ensure that India continues to be a haven of stability and growth in a very turbulent global environment". (Reuters)

  • world bank, indian economy, world bank on indian economy, indian economy world bank, economic growth, indian economic growth

    The report estimates GDP growth for the second half and for the full year at 6.3 per cent and 6.7 per cent, respectively with a downward bias. (Source: Reuters)

  • world bank, indian economy, world bank on indian economy, indian economy world bank, economic growth, indian economic growth

    9. Reduction in the central government's fiscal deficit close to 4 percent of the GDP, down from a peak of 7.6 percent in 2009 through fiscal consolidation. (Image Source: Reuters)

  • world bank, indian economy, world bank on indian economy, indian economy world bank, economic growth, indian economic growth

    10. The central bank has been rebuilding reserves while net foreign direct investment (FDI) inflows have stayed positive. (Image Source: Reuters)

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