World Bank says India has the potential to grow 7.3 percent in the year 2018, according to the report in Global economic Projects 2018. The report was released by the World Bank. It says that despite some downward trends in the economy, India will register a strong growth in the coming year.
The global cycle of upturn has started as stated in the reports. Last year, India saw some of the biggest of decisions in its economy which has reduced its current GDP growth, such as Demonetization and GST. but, as suggested by reports in the media and experts these could prove to be helpful in the long run.
The emerging and developing economies in the world will have a positive growth this year as the environment in the manufacturing, export and trade seems to improve. We will see double-digit growth in some of the countries too.
India as compared to China had 6.2 percent growth last year and given its demographic dividend, it is likely that this cycle of growth will be sustained in the coming years. While the report mentions that China’s growth is going to slow down in the coming years but whereas Indian growth will accelerate in the coming one or two years.
While the report also cautions about the few of the issues which may affect the growth. The rise in the NPAs of the Banks and Overall health of public health banks. The status of debt must be clear for banks to report a healthy growth.
The World Bank & India
IN recent time Government has tried to infuse capital in some of its lagging institutions. The Air India and Public sector Banks comes at a first place. They have performed poorly and needs a large amount of capital. The Government must find ways to solve this impending crisis.
According to the World Bank report, this would be the first year when the negative global output gap is expected to be closed. The advancing economies will also see a healthy growth in the year 2018 and 2019. The report also indicates that India may emerge as the fastest developing economies in the world given the unique proposition of demographics which is not available in most of the countries.
While the potential of India is nowhere to be doubted but the impending crisis of Unemployment could create serious problems for the economy. Despite the healthy growth, the rise in unemployment is a serious concern. Another issue dealing with the Indian scenario is the investment by foreign companies.
The large-scale investment is required by the government as well as private to create and sustain the healthy growth of the economy. What is envisioned in the Union Budget of 2018 will also play a major role in where the growth rate is headed.
The recent intervention in the economy, which is taken to bring new order and transparency will take time to settle down. The Budget and reforms taken by the government will play a key role in the development of the Indian economy in the future. We remain hopeful for the future.