According to World Bank‘s January 2019 Global Economic Prospects report, India’s GDP is expected to grow at 7.3 percent in fiscal year 2019, and 7.5 percent in the following two years due to an upswing in consumption and investment. World Bank Prospects Group director Ayhan Kose said, “India’s growth outlook is still robust. India is still the fastest growing major economy.”
China’s economic growth is projected to slow down to 6.2 percent each in 2019 and 2020 and 6 percent in 2021. In 2018, the Chinese economy is estimated to have grown by 6.5 percent as against India’s 7.3 percent.
Strong domestic demand is likely to widen the current account deficit to 2.6 percent of GDP next year. Inflation is projected to rise somewhat above the midpoint of India’s central bank’s target range of 2 to 6 percent, mainly owing to energy and food prices. The report added that the recent introduction of the Goods and Services Tax and steps toward demonetization in India are expected to encourage a shift from the informal to the formal sector.
“The fact that the Indian economy is being able to deliver growth slightly above its potential is a very good sign,” Kose added. Refraining from commenting on the economic performance of the Modi Government in an election year, the World Bank official said, “India’s growth performance has been quite impressive. Year after year it has delivered strong numbers around its potential growth.”
Last updated: December 26th, 2025
