World Bank’s 2018 Global Economics Prospect, India, despite initial setbacks from demonetisation and Goods and Services Tax, is estimated to have grown at 6.7 per cent in 2017.
The world bank says that India has favourable demographic profile. With an “ambitious government undertaking comprehensive reforms”, India has “enormous growth potential” compared to other emerging economies, the World Bank said as it projected country’s growth rate to 7.3 per cent in 2018 and 7.5 for the next two years.
Despite initial setbacks from demonetisation to Goods and Services Tax(GST) India, is estimated to have grown at 6.7 per cent in 2017, according to the 2018 Global Economics Prospect released by the World Bank in Washington on Tuesday. The world bank also estimated that India’s growth rate in the past three years has been quite healthy.
“In all likelihood India is going to register higher growth rate than other major emerging market economies in the next decade. So, I wouldn’t focus on the short-term numbers. I would look at the big picture for India and big picture is telling us that it has enormous potential,” Ayhan Kose, Director, Development Prospects Group, World Bank, told PTI in an interview.
He said in comparison with China, which is slowing, the World Bank is expecting India to gradually accelerate. “On the productivity side, India has enormous potential with respect to secondary education completion rate. All in all, improved labor market reforms, education and health reforms as well as relaxing investment bottleneck will help improve India’s prospects,” Kose said. He added that India has a favourable demographic profile which is rarely seen in other economies.
Mr kosh also pointed that improving female labour force participation is still remains low as compared to other emerging market economies. Reducing youth unemployment is critical, and pushing for private investment, where problems are already well-known like bank assets quality issues…If these are done, India can reach its potential easily and exceed, Kose asserted.