India will see a robust growth of 7.3 percent this year and 7.5 percent for the next two years as “factors holding back growth in India fade,” the World Bank has forecast. The June 2018 edition of the Global Economic Prospect report — the global lender’s flagship publication on the state of the world economy — noted that the Indian economy has moved past the disruptions caused by the implementation of Goods and Services Tax in mid-2017, adding that manufacturing output and industrial production have continued to firm since then.
The report added, “Per capita growth rates in the region are strong, and are expected to help bring down poverty in coming years, particularly in India.” China is expected to slow down slightly from 6.9% in 2017 to 6.5% in 2018, 6.3% in 2019 and 6.2% in 2020, it said.
Ayhan Kose, Director of the Development Prospects Group at the World Bank said, “India’s economy (today) is robust, resilient, and has potential to deliver sustained growth. India is doing well. Investment growth remains high. Consumption remains strong. All in all these numbers are encouraging. India is the fastest growing economy in major emerging markets.”
Seeking a higher female labor force participation, Kose said India has room for improvement in secondary education completion rates. He added that the tightening of global financial conditions could have implications for emerging market economies.
