The World Bank projected India’s GDP growth at 7.3 per cent for the next financial year and accelerate further to 7.5 per cent in 2019-20.
The World Bank’s biannual publication, ‘India Development Update: India’s Growth Story’, expects the economy to clock a growth rate of 6.7 per cent in the current fiscal ending March 31.
The report, however, observed that a growth of over 8 per cent will require “continued reform and a widening of their scope” aimed at resolving issues related to credit and investment, and enhancing competitiveness of exports.
“The Indian economy is likely to recover from the impact of demonetisation and the GST, and growth should revert slowly to a level consistent with its proximate factors — that is, to about 7.5 per cent a year,” the report said.
In November 2016, the government had scrapped high value currency notes of Rs 500 and Rs 1,000 in a bid to check black money, among others.
Later, India implemented its biggest indirect tax reform — Goods and Services Tax (GST). Both of these initiatives had impacted the economic activities in the country in short run.