In its twice-a-year South Asia Economic Focus, Washington D.C. headquartered World Bank forecast a growth rate of 7.3 percent for India this year and 7.5 percent for 2019 and 2020. Additionally, it noted that the country’s economy has recovered from the effects of demonetization and the Goods and Services Tax.
The report said that India should strive to accelerate investments and exports to take advantage of the recovery in global growth, and that the country must create 8.1 million jobs a year to maintain its employment rate.
Public and private consumption gained pace, but overall demand slowed as public investments started to wane. If internal bottlenecks are not alleviated, subdued private investment would put downside pressures on India’s potential growth, the Bank warned.
