Why is it in the news ?
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The World Bank kept India’s growth projection unchanged at 7.3% for 2018-19 and 7.5% in 2019-20.
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This comes in the wake of the Central Statistics Office projecting the Indian economy to grow at 7.2% in 2018-19 against 6.7% a year ago.
More in the news
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The World Bank attributing its forecast to upswing in consumption and investment. It said India will continue to be the fastest growing major economy in the world.
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Domestic demand has strengthened as the benefits of structural reforms such as the Goods and Services Tax (GST) harmonisation and bank recapitalisation take effect.
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However, the World Bank has also warned that if a trade war between the US and China leads to a global slowdown, the spillover effects on emerging market and developing economies (EMDEs) could be profound.
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China’s economic growth is projected to slow down to 6.2% each in 2019 and 2020 and 6% in 2021.
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In 2018, the Chinese economy is estimated to have grown by 6.5% as against India’s 7.3%.
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In 2017, China with 6.9% growth was marginally ahead of India’s 6.7%, mainly because the slowdown in the Indian economy due to demonetisation and implementation of the Goods and Services Tax (GST), the report said.
Source
The Hindu.