India’s GDP growth to be 7.3 % in 2018-19: World Bank

Why is it in the news?
  • As per the recent forecast by World Bank, India’s GDP is expected to grow at 7.3% in the fiscal year 2018-19, and 7.5% in the following two years.
  • The World Bank has attributed the growth to an upswing in consumption and investment.
  • It also said India will continue to be the fastest growing major economy in the world.
More in the news
Findings of the World Bank's Report:
    • The world Bank has projected that China’s economic growth is to slow down to 6.2% each in 2019 and 2020 and 6% in 2021.
    • 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 GST.
    • In India, the growth has accelerated, driven by an upswing in consumption, and investment growth has firmed as the effects of temporary factors wane.
    • Also, domestic demand has strengthened as the benefits of structural reforms such as GST harmonisation and bank recapitalisation take effect.
    • Private consumption is projected to remain robust and investment growth is expected to continue.
    • CAD and Inflation:
      (1) Strong domestic demand is envisioned to widen the current account deficit(CAD) to 2.6% of GDP next year.
      (2) Inflation is projected to rise somewhat above the midpoint of the Reserve Bank of India’s target range of 2 to 6%, mainly owing to energy and food prices.
    About World Bank
      • The World Bank Group (WBG) was established in 1944 to rebuild post-World War II Europe under the International Bank for Reconstruction and Development (IBRD).
      • Today, the World Bank functions as an international organization that fights poverty by offering developmental assistance to middle-income and low-income countries.
      • To become a member, a country must first join the International Monetary Fund (IMF).
      • The size of the World Bank's shareholders, like that of the IMF's shareholders, depends on the size of a country's economy. Thus, the cost of a subscription to the World Bank is a factor of the quota paid to the IMF.
      • The World Bank Group consists of five organizations:
        (1) The International Bank for Reconstruction and Development.
        (2) The International Development Association
        (3) The International Finance Corporation
        (4) The Multilateral Investment Guarantee Agency
        (5) The International Centre for Settlement of Investment Disputes
      Source
      The Hindu.



      Posted by Jawwad Kazi on 9th Apr 2019
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