World Bank forecast: India to grow at 7.3 per cent in FY19
The World Bank forecasted Indian economic growth to accelerate to 7.3 per cent in 2018-19 and to further speed up to 7.5 per cent in 2019-20.
In its latest biannual India Development Update, the World Bank said that if liquidity in financial market tightens, it may adversely impact India’s growth outlook whereas, the bank does not expect oil prices to pose much risk with range-bound prices at an average $58 per barrel in 2018. Also, the Economic Survey tabled in Parliament had projected a similar growth rate of 7 to 7.5 per cent for FY19.
The World Bank report also stated that to sustain an 8 per cent GDP growth rate, India needs decisive structural reform momentum that can stimulate investment and export growth and maintain macro-economic stability.
The bank has also indicated that the GST is one of the most complex tax systems and has the second highest tax rate in the world among a sample of 115 countries which have a similar indirect tax system.
According to the second advanced estimates of the Central Statistics Office, the Indian economy is expected to grow at 6.6 per cent in the current financial year as compared to a growth of 7.1 per cent in FY17.