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Economy

India to be fastest growing economy, growth rate to touch 7.5 per cent: World Bank

New Delhi/United Nations, Jan 9 : Pushed by 'robust consumption' and policy reforms, India's economy will accelerate to 7.5 per cent in 2019-20, World Bank has said and it also maintained that India will retain its position as the fastest growing major economy.

The Bank's Global Economic Prospects (GEP) report said: "India is forecast to accelerate to 7.5 per cent in fiscal year 2019-20 as consumption remains robust and investment growth continues, and as (economic) activity benefits from recent policy reforms and a rebound in credit."

For the 2020-21 and 2021-22 fiscal years, the GEP has projected a growth rate of 7.5 per cent.The World Bank's projection of 7.5 per cent growth rate for the next fiscal year is modestly higher than the 7.4 per cent made by the International Monetary Fund last October.

The report has, however, cautioned South Asia of the upcoming election cycle "elevates political uncertainty in the region"."The challenging political environment could adversely affect the ongoing reform agenda and economic activity in some countries," it said.

In South Asia, Pakistan's growth rate is forecast to fall drastically from last fiscal year's 5.8 per cent to 3.7 per cent this fiscal year. About Pakistan's economy, the report talks about 'financial conditions' getting tightened in the face of rising inflation and "external vulnerabilities". In 2019-20, it may however rise to 4.8 per cent.

Bangladesh grew faster than India with 7.9 per cent in the last fiscal year "driven mainly by private consumption and supported by remittance inflows", the report said.

But growth rate in Bangladesh is forecast to fall to 7 per cent in the fiscal 2018-19. UNI