The World Bank expects the Indian economy to shrug off disruption caused by demonetization and the introduction of a Goods and Services Tax (GST) and return to a path of robust growth in coming years.
In its report the World Bank said the country’s economy is expected to grow 7.3% in 2018-19 and accelerate to 7.5% in 2019-20, and it called for reforms to sustain growth in the years ahead, the Times of India has reported.
The report projected the GDP report to reach 6.7% in 2017-18, in line with official estimates.
But to sustain growth it said India would need to keep a close eye on several factors to make the country more resilient to shocks – reforms in the banking sector, strengthening financial institutions and better regulatory supervision of the financial sector.
The bank also said that structural reforms in the health, education and service delivery sectors would be critical for the development of human resources required to sustain growth.
While the bank expects that services will continue to drive the economy, industrial activity is poised to grow, with manufacturing expected to accelerate.