Tuesday, June 21, 2016

World Bank forecasts 7.6% growth for India

The World Bank has forecast India's economic growth at 7.6 per cent rate in the current financial year, the same as was registered in 2015-16. To grow at even this rate, the economy would have to activate its stalled engines - agricultural growth and rural demand, trade and private investment - and sustain demand from urban households and public investments, The World Bank said. Growth would gradually recover to 7.7 per cent next year and 7.8 per cent in 2018-19, it said in its latest India Development Update, released on Monday.

The report is titled Financing Double-Digit Growth and it prescribed the government carry out reforms, particularly in the financial sector, to enable the economy touch 10 per cent growth or more. Amid allegations that economic growth is not creating jobs, the World Bank report said manufacturing and services sectors, which expanded 7.4 per cent and 8.9 per cent respectively in FY16, also created urban jobs. It should be mentioned that the 7.6 per cent growth forecast the economy in the current financial year is 0.2 percentage points lower than predictions made in January.

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