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India to grow at 7.8% in current year: World Bank

Lakshmi Puri by Lakshmi Puri
January 7, 2016
in Share Market
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ProMASS News Bureau: Jan 6, 2016:

The World Bank has projected a robust 7.8 percent growth for the Indian economy in the current year. In its Global Economic Prospect report released yesterday, the World Bank cited strong investor sentiment in India and the positive effect on real incomes of the recent fall in oil prices. The report said, India’s currency and stock markets were largely resilient over the past year, even during bouts of volatility in global financial markets.

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The Bank has further forecast a 7.9 per cent growth for India in the next two years. This comes even as the Chinese growth is projected to slow further while Russia and Brazil are expected to remain in recession during 2016 among the major developing economies. The World Bank, however, said, there are some downside risks to India’s growth that are mostly domestic. The report said, slow progress on land reforms can lead to investment delays, adding that the financing of public-private partnerships also remains a challenge. The report further stated, failure to pass the Goods and Services Tax bill by Parliament may hamper the Indian government’s ability to increase the infrastructure spending.

 

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