World Bank projects 7.3 % growth in 2018

World Bank projects 7.3 % growth in 2018

Context

2018 Global Economics Prospect released by the World Bank

Observations made wrt India

• India’s growth rate in 2018 is projected to hit 7.3% and 7.5% in the next two years, according to the World Bank, which said the country has “enormous growth potential” compared to other emerging economies with the implementation of comprehensive reforms
• India’s economy is likely to grow 7.3% in 2018 and then accelerate to 7.5% in the next two years, the bank said. China grew at 6.8% in 2017, 0.1% more than that of India, while in 2018, its growth rate is projected at 6.4%. And in the next two years, the country’s growth rate will drop marginally to 6.3 and 6.2%, respectively

Measures that India should take

• To materialise its potential, India needs to take steps to boost investment prospects
• Measures in terms of non- performing loans and productivity
• Improved labour market reforms, education and health reforms as well as relaxing investment bottleneck will help improve India’s prospects
• Improving female labour force participation rate is going to be important