Though in its first projection on India post-demonetisation, the World Bank lowered the country’s GDP growth estimate for this fiscal to 7 per cent, from its earlier estimate of 7.6 per cent made in June last year, World Bank CEO Kristalina Georgieva on Thursday lauded PM Narendra Modi’s demonetisation move. “PM Modi’s decision to ban high-value banknotes as part of efforts to stamp out corruption will have a profound and positive impact on India’s economy,” she told Hindustan Times. “What India has done will be studied (by other countries). There hasn’t been such demonetisation in a country so big,” she further told HT.
Georgieva was in India for two days. It was her first official visit to the country. During her visit, she traveled in a local train and also inspected the operations of the suburban rail system which has been supported by the international financial institution. She held discussions with Finance Minister Arun Jaitley, Maharashtra Chief Minister Devendra Fadnavis, RBI Governor Urjit Patel besides other key policy-makers.
“India is our biggest middle-income client. Its economic growth influences global growth. Its achievements in health and education contribute to the world achieving the Sustainable Development Goals. I am keen to learn more as India is a laboratory for the world to learn about what works in development and to find new ways to collaborate.” Georgieva said. also visited a school serving low-income households in Dharavi and interacted with students, teachers, and parents. The newly appointed CEO of World Bank then met children with special needs.
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Meanwhile, On Tuesday, the government pegged GDP growth at a higher-than-expected 7.1% for the current fiscal despite note ban with agriculture sector doing exceptionally well, helping India retain the tag of world’s fastest growing major economy.