WORLD BANK REPORT ON INDIAN ECONOMY
By Venkatesh / 24th Oct 2018
WORLD BANK REPORT ON INDIAN ECONOMY,Updated World Bank figures for 2017 show that India is now the world's sixth-biggest economy, having gained momentum ahead of France, which was backslashed to the seventh position.India's gross domestic product (GDP) stood at $2.597 trillion at the end of 2017, compared to $2.582 trillion for France. The US continued to be the world's biggest economy, followed by China, Japan and Germany. Britain remained the world's fifth-biggest economy with a GDP of $2.622 trillion at the end of 2017.Backed by government spending and investment, India's economy grew at a seven-quarter high of 7.7 per cent in the January-March quarter of the financial year 2018. But this did not prevent GDP growth, at 6.7 per cent in 2017-18, from falling to its lowest rate in four years of the Narendra Modi government. The finance ministry said India's economy would clock 7.5 per cent growth in 2018-19, the upper range of growth projected by the Economic Survey. India is expected to grow at 7.4 per cent in 2018 and 7.8 per cent in 2019, leaving its nearest rival China behind respectively at 6.6 and 6.4 per cent in the two years, the International Monetary Fund (IMF) said in April this year. Last year in December, the World Economic League Table (WELT) 2018 released by the Centre for Economics and Business Research forecast that India would "leapfrog" Britain and France to become the world's fifth largest economy in 2018, ahead of an oncoming major global economic shift towards Asia.
India is in a period of unprecedented opportunity, challenge and ambition in its development. Already the world’s third largest economy in purchasing parity terms, India aspires to better the lives of all its citizens and become a high-middle income country by 2030, well before the centenary of its independence.Long-term GDP growth has become more stable, diversified, and resilient. Over the next few years, India is expected to grow at well over 7 percent per year, with progress being buttressed by dynamic reforms in the macroeconomic, fiscal, tax and business environments. In recent years, the country has made a significant dent in poverty levels, with extreme poverty dropping from 46 percent to an estimated 13.4 percent over the two decades before 2015. While India is still home to 176 million poor people, it is seeking to achieve better growth, as well as to promote inclusion and sustainability by reshaping policy approaches to human development, social protection, financial inclusion, rural transformation, and infrastructure development.
While the country’s development trajectory is strong, challenges remain. Economic performance has been strong, but development has been uneven, with the gains of economic progress and access to opportunities differing between population groups and geographic areas. Despite regulatory improvements to spur competitiveness, levels of private investment and exports continue to be relatively low, undermining prospects for longer term growth. The country’s human development indicators – ranging from education outcomes to a low and declining rate of female labor force participation - underscore its substantial development needs.