Upswing in consumption and investment to drive growth
India’s GDP is expected to grow at 7.3% in the fiscal year 2018-19, and 7.5% in the following two years, the World Bank has forecast, attributing it to an upswing in consumption and investment. The bank said India will continue to be the fastest growing major economy in the world.
China to slow down
China’s economic growth is projected to slow down to 6.2% each in 2019 and 2020 and 6% in 2021, according to the January 2019 Global Economic Prospects report released by the World Bank. In 2018, the Chinese economy is estimated to have grown by 6.5% as against India’s 7.3%. In 2017, China with 6.9% growth was marginally ahead of India’s 6.7%, mainly because of the slowdown in the Indian economy due to demonetisation and implementation of the Goods and Services Tax (GST), the report said.
“India’s growth outlook is still robust. India is still the fastest growing major economy,” World Bank Prospects Group Director Ayhan Kose told PTI in an interview. “With investment picking up and consumption remaining strong, we expect India to grow 7.3% in the fiscal year 2018-2019, and average 7.5% in 2019 and 2020. India registered quite a bit of pick up in doing business ranking. The growth momentum is there (in India),” Mr. Kose told PTI.