World Bank endorses the Indian growth story; forecasts Indian economy to grow at 7.3% in next fiscal and 7.5% in 2019-2020; says India’s growth story is remarkably stable and resilient; lauds govt for undertaking economic reforms and controlling inflation.

Yet another global financial institution has given its stamp of approval to the galloping India growth story.

World Bank’s publication ‘India Development Update’ has noted credible signs of a further uptick in Indian economic growth.

The rebound in industrial activity including manufacturing sector is critical for job creation in the years to come.

The report says that the Indian economy is set to revert to its trend growth rate of 7.5% as it bottoms out from the impact of GST and demonetisation.

The World Bank Report points to macroeconomic stability of the Indian economy.

The report expects the Indian economy to clock a growth rate of 6.7 per cent in the current fiscal, rise to 7.3 per cent for the next financial year and accelerate further to 7.5 per cent in 2019-20.

Besides pointing to enhanced macroeconomic stability on sectoral growth, the report says that services will continue to be the main driver of economic growth; agricultural growth has become more stable with slow acceleration and industrial growth has seen some acceleration.

World Bank report has lauded India’s recent record in controlling inflation; fiscal discipline despite revised budget estimates, declining debt to GDP ratio even after accounting for recapitalisation of banks, stable balance of payment situation and higher macroeconomic stability as compared to recent years.

The report refers to the impact of reforms on the Indian economy from composition of deficit, energy subsidy reforms, GST, ease of doing business, FDI liberalisation, infrastructure generation, inflation targeting framework, Insolvency and Bankruptcy Code, to access to financial services and digital payments leading to better governance, and delivery of services and benefits.

The report says that oil prices could impact the Indian economy as India is increasingly integrated with the global economy.

It appreciated the impact of GST on formalisation of the economy and for making economic growth sustainable.

As one of the fastest growing emerging and open economies global growth impacts the Indian economy.

With global growth picking up, it is expected to infuse further momentum into the Indian growth story

The World Bank Report is an endorsement of economic reforms undertaken by the Modi govt and India’s growth is expected to have a salutory impact on the global growth scenario as well.