India to grow at 7.5 per cent during next three years: World Bank
New Delhi: The World Bank has forecast that India’s economy is projected to grow at 7.5 per cent in the next three years, supported by robust investment and private consumption.
The bank in its Global Economic Prospects released yesterday said that India is estimated to have grown 7.2 per cent in fiscal year 2018-19, which ended March 31 this year. A slowdown in government consumption was offset by solid investment, which benefitted from public infrastructure spending.
The World Bank said, as against a growth rate of 6.6 per cent in 2018, China’s growth rate in 2019 is projected to be dropped to 6.2 per cent and then subsequently to 6.1 per cent in 2020 and 6 per cent in 2021.
With this, India will continue to retain the position of being the fastest growing emerging economy. And by 2021, its growth rate is projected to be 1.5 per cent more than China’s 6 per cent.
According to the World Bank, growth in India is projected at 7.5 per cent in Fiscal Year 2019/20 (April 1, 2019 to March 31, 2020), unchanged from the previous forecast, and to stay at this pace through the next two fiscal years.
“Private consumption and investment will benefit from strengthening credit growth amid more accommodative monetary policy, with inflation having fallen below the Reserve Bank of India’s target, it said.
The World Bank’s report came as a good news for India days after Data from Central Statistics Office (CSO) showed that India’s economic growth slowed to a five-year low of 5.8 per cent in fourth quarter of 2018-19, pushing the country behind China.