Washington, Jun 5 (UNI) The World Bank has said in its Global Economic Prospects Report for 2019 that the Indian economy will grow at a rate of 7.5 per cent during the 2019-’20 financial year, and beyond.
The report released on Tuesday here stated that India is set to retain its ‘fastest growing emerging economy’ title.
The World Bank stated, “India is projected to grow at 7.5 per cent in the next three years, supported by robust investment and private consumption.”
As against a growth rate of 6.6 per cent in 2018, China’s growth rate in 2019 is projected to slowdown to 6.2 per cent, and then subsequently to 6.1 per cent in 2020 and 6 per cent in 2021, the bank said.
With this, India will continue to retain the position of being the fastest growing emerging economy. And by 2021, its growth rate is projected to be 1.5 per cent more than China’s 6 per cent.
According to the World Bank, growth in India is projected at 7.5 per cent in Fiscal Year 2019-20 (April 1, 2019 to March 31, 2020), unchanged from the previous forecast, and to stay at this pace through the next two fiscal years.
‘Private consumption and investment will benefit from strengthening credit growth amid more accomodative monetary policy, with inflation having fallen below the Reserve Bank of India’s target,’ it said.
It also stated, “Support from delays in planned fiscal consolidation at the central-level should partially offset the effects of political uncertainty around elections in FY 2018-19.”
The World Bank said that India’s urban consumption was supported by a pick-up in credit growth, whereas rural consumption was hindered by soft agricultural prices.
The economy grew at just 5.8 pc in the January-March quarter and 6.8 per cent in 2018-’19.