World Bank: India to be fastest growing economy in 3 years

The World Bank forecasted that the Indian economy will grow as the fastest economy in the world surpassing, China the largest economy in the world. It expects India to grow by 7.3 per cent in FY19 and 7.5 per cent in the next two years.

It sees the factors holding it back to recede and accelerate the growth wagon. In its global economic prospect report it claimed India’s rising private consumption and strengthening investment will help it grow at a faster pace.

As now the economy has recovered from the hiccups of demonetization and GST implementation, which severely impacted India’s industrial production, output growth, etc. India is also considered to be the most favourite investment destination among the emerging market economies.

Further, heavy infrastructure spending, changing structural policies and robust consumption trend will certainly help the growth sustain over a long period. The IBC resolutions are also showing results indicating some signs of recovery in the banking system.

However, the key risk like rise in oil prices, fiscal slippage and depreciating rupee cast shadow on the growth cycle over the years.