India is the only major economy among the top five growing economies in the world. The countries ahead of India in the list include Ethiopia, Uzbekistan and Nepal.
India is the fourth fastest growing economy in the world, says a report by the World Economic Forum. But, a closer look reveals that India is the only major economy among the fastest growing economies, as the other countries in the list include names such as Djiboiti, Laos, Tanzania et al. The countries ahead of India in the list include Ethiopia, Uzbekistan and Nepal.
According to World Bank’s latest edition of Global Economic Prospects, India has a projected economic growth of 7.2% in 2017, as against global projected growth of 2.7% says the report. Ethiopia’s GDP is forecast to grow by 8.3% in 2017. Uzbekistan and Nepal, the other countries ahead of India have projected growth rates of 7.6% and 7.5% respectively.
World Bank Group says that the recent data indicate an acceleration in growth in India, with an easing of cash shortages and a rise in exports. An increase in government spending, including on capital formation, has partially offset soft private investment, says the report. Further, India’s GDP growth is expected to accelerate to 7.5 is the next fiscal year on the back of strong domestic demand supported by policy reforms. The World bank Report acknowledges the impact of demonetization says that, “India is recovering from temporary adverse effects of the end-2016 withdrawal of large-denomination currency notes.” Further World Bank says an increase in infrastructure spending, robust government consumption and a favourable monsoon were the factors favouring the country’s high growth.
The report also points out that inflation has remained benign, hovering below target in Bangladesh, Pakistan, and India. Explaining the reason for the same, World Bank says that favorable weather (e.g., India, Pakistan) and lower oil prices have helped keep inflation low, and thereby made possible an accommodative monetary policy. Despite mixed progress with fiscal consolidation in the region, deficits generally declined.
Earlier, a report by the World Economic Forum said that India has been creating a billionaire a month since 2010. India ranks fourth in the list of countries with the most number of billionaires. Only the United States of America (565), China (319) and Germany (114) have more number of billionaires than India.