The Modi government’s economic initiatives continue to excite global bodies, with both the World Bank and the International Monetary Fund painting a rosy picture for India.
The World Bank said GDP is expected to accelerate to 7.2% in 2014-15, to 7.6% in 2015-16 and 8.0% in 2017-18.
The IMF said India will overtake China as the fastest-growing emerging economy in 2015-16 by clocking a 7.5% growth rate on back of policy initiatives, pick-up in investments and lower oil prices. China is expected to grow 6.8% in 2015-16. IMF also said said it sees no reason why India cannot achieve 8%, 9% or an even higher growth rate, going forward.
“The Indian economy has taken strong strides towards higher and more inclusive growth,” the World Bank said in a report on South Asia economies. “Recent economic activity has been on an upturn — growth has accelerated, inflation has declined, current account deficit has narrowed, and external buffers have been replenished.”
The bank credited it projection to “an ambitious reform agenda”, which, it said, “which, if fully implemented, can unlock investments and boost growth.”