Skip to main content

India's GDP growth to remain strong


Describing South Asia as a global growth hotspot, the World Bank has said India's GDP growth will remain strong at 7.6 percent in 2016 and 7.7 percent in 2017.

"In India, GDP growth will remain strong at 7.6 percent in 2016 and 7.7 percent in 2017, supported by expectations of a rebound in agriculture, civil service pay reforms supporting consumption, increasingly positive contributions from exports and a recovery of private investment in the medium term," the World Bank said in its latest report on South Asia Economic Focus released yesterday.

"However, India faces the challenge of further accelerating the responsiveness of poverty reduction to growth, promoting inclusion, and extending gains to a broader range of human development outcomes related to health, nutrition, education and gender," said the biannual report.

According to the report, South Asia remains a global growth hotspot and has proven resilient to external headwinds such as China's slowdown, uncertainty around stimulus policy in advanced economies, and slowing remittances.

The main challenges remain domestic, and include policy uncertainty as well as fiscal and financial vulnerabilities.

In Pakistan, economic activity is projected to gradually accelerate over the medium term reaching 5.0 percent in 2017 and 5.4 percent in 2018, building upon 4.7 percent GDP growth at factor cost in 2016 (5.7 percent at market prices).

Growth in Bangladesh has remained robust despite internal and external headwinds, it said. Growth will be sustained at 6.8 percent in 2017, coming slightly down from 7.1 percent in 2016, the report added.

On India, the report said economic growth remained robust, which, as in the past, is expected to support continued poverty reduction.

"This year is expected to see some convergence in rural and urban economies, supported by stimulating policies, such as passage of GST and civil pay revisions, along with good monsoons," the report said.

Re-balancing of growth drivers will in turn support the sustainability and inclusiveness of GDP and household income growth going forward, it said.

"Optimism on the growth front needs to be balanced with caution when translating to broad-based poverty reduction. Despite the recent success in poverty reduction, gains have been uneven, with greater progress in states and social groups that were already better-off," the report said.

"India faces the challenge of further accelerating the responsiveness of poverty reduction to growth, enforcing inclusion of presently excluded groups (such as women and scheduled tribes), and extending gains to a broader range of human development outcomes related to health, nutrition, education and gender, where the country continues to rank poorly," said the report

Source - World Bank report

Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

INDIA CHINA RELATION

A Himalayan balancing act     The great Himalayan Divide between India and China was in evidence last week following the  >  Chinese refusal to support India's case  for entry into the  > Nuclear Suppliers Group . While non-entry into the Group is not the end of the world, for India lives to fight another day, of concern is what the Chinese stance implies for the bilateral relationship between the two Asian giants. This is a relationship that has been assiduously tended over the years since the mid-seventies when ambassadorial relations between the two countries were restored at the initiative of Prime Minister Indira Gandhi. Despite the humiliation suffered in 1962, she famously opined that “we cannot march to Peking” and that normalisation of relations constituted the triumph of maturity over the futility of alienation. Transformation in the 1980s Cut to summertime, the year being 1986. An Indian border patrol on its way to re-establish ...
Post a Comment
Read more

land bill : Delay unlikely to impact overaoverall Indian economy

With the Congress opposing any change in retrospective clause of the Land Act brought in by the UPA in 2013, the Joint Parliamentary Committee examining the proposed amendments in the Act will now be able to submit its report only in the Winter session of Parliament. While this gives a moral victory to the Congress and other Opposition parties, economists say that the delay is unlikely to have much impact on the overall economic situation. Madan Sabnavis, chief economist, CARE Ratings, said that while the Bill per se will not have any effect on the economy, which was growing even in the absence of Land Act 2013, it “will certainly help in improving the sentiments for investments in the country”. “If the Land Bill is delayed and status quo maintained, there will be no adverse effect. However, if the Bill is passed it will certainly give an impetus to the overall economy,” he said adding that with the private sector operating at a capacity of 70-80 per cent, there is no urgency in...
1 comment
Read more

Albert Einstein: free thinking and hidebound attitudes

The Guardian view on Albert Einstein: free thinking and hidebound attitudes Editorial Albert Einstein’s humanitarian reputation almost matches his scientific stature. From the 1930s onwards he vigorously denounced racism, “a disease of white people”, once observing that “being a Jew myself, perhaps I can understand and empathise with how black people feel as victims of discrimination”. So it is especially shocking to learn of racist and misogynist comments that he made while travelling in Asia in the 1920s. In his newly published diaries from the period, he describes the Chinese as “industrious, filthy, obtuse” and “a peculiar herd-like nation”. Though he praises their modesty and gentleness, he also echoes contemporary warnings that they posed a demographic threat: “It would be a pity if these Chinese supplant all other races. For the likes of us the mere thought is unspeakably dreary.” How could a figure renowned for his empathy and wisdom have written such passages? The answer ...
Post a Comment
Read more