Recovering from adverse effects of GST & demonitisation, India has projected 7.3% growth in FY 18

Washington, April 17: The World Bank on Monday predicted that India will witness a growth of 7.3% in its economy in the current fiscal as compared that of in the 2017-18 financial year at 6.7%.

The World Bank in its twice-a-year South Asia Economic Focus report in Washington yesterday said that growth is expected to accelerate from 6.7 in 2017 to 7.3 percent in 2018 and to subsequently stabilise supported by a sustained recovery in private investment and private consumption.

In the India section of the report, it said India should strive to accelerate investments and exports to take advantage of the recovery in global growth. World Bank acknowledged that disruptions from demonetisation and events surrounding the implementation of the GST led to a setback in economic activity and a potentially larger negative effect on the poor and vulnerable.

Every month, the working age increases by 1.3 million people and India must create 8.1 million jobs a year to maintain its employment rate. By analysing the country's employment data for the period 2005-2015, the international financial institution said that, the rate is dropping as women are leaving the job sector. It further advised that, India must boost its investments and exports. 

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