Washington D.C.: India's growth rate is expected to accelerate to 7.3 per cent during the current financial year ending March 2019, the World Bank has said.
"India is forecast to accelerate to 7.3 per cent in FY 2018/19 as consumption remains robust and investment growth continues," says the World Bank in the January 2019 Global Economic Prospects report.
The Economic Survey 2017-18 had projected the growth rate of gross domestic product (GDP) for the year 2018-19 to be in the range of 7 to 7.5 per cent. In the fifth bi-monthly monetary policy statement, 2018-19, the Reserve Bank of India (RBI) had projected India's GDP growth for 2018-19 at 7.4 per cent.
The India Development Update (March 2018) and Global Economic Prospects (June 2018) published by the World Bank also mention that the temporary disruptions caused by the implementation of the Goods and Services Tax and demonetisation have dissipated and the growth of the economy has improved significantly since then.
According to the World Bank, South Asia's "growth is expected to accelerate to 7.1 per cent in 2019, underpinned by strengthening investment and robust consumption."
Bangladesh's growth is expected to slow to 7 per cent in FY2018/19 as "activity is supported by strong private consumption and infrastructure spending."
"Pakistan's growth is projected to decelerate to 3.7 per cent in FY2018/19, with financial conditions tightening to help counter rising inflation and external vulnerabilities," says the report.
Sri Lanka is anticipated to speed up slightly to 4 per cent in 2019, supported by robust domestic demand and investment boosted by infrastructure projects. Nepal's post-earthquake momentum is forecast to moderate, and growth should slow to 5.9 per cent in FY2018/19.
"At the beginning of 2018 the global economy was firing on all cylinders, but it lost speed during the year and the ride could get even bumpier in the year ahead," said World Bank Chief Executive Officer Kristalina Georgieva in a statement.
"As economic and financial headwinds intensify for emerging and developing countries, the world's progress in reducing extreme poverty could be jeopardised. To keep the momentum, countries need to invest in people, foster inclusive growth, and build resilient societies," he added.