The World Bank maintains its growth forecast for the Indian economy for the current fiscal year, expecting it to expand by 7.5 per cent in 2015-16. It has backed the implementation of three key reforms, including the Goods & Services Tax to sustain the momentum. In its development update, a twice a year report on the Indian economy, the bank says it expects growth to accelerate to 7.8 per cent in 2016-17 and 7.9 per cent in 2017-18. The Reserve Bank of India expects the economy to grow by 7.4 per cent in the current fiscal year, while the government pegs it at over 7.5 per cent. The International Monetary Fund expects growth to be 7.5 per cent.
The update noted that while public investments have helped kick-start the investment cycle, increased participation of the private sector will be required going forward. “There are good reasons for confidence in India's nearterm prospects. To lay the foundation for sustainable growth and accelerate job creation, implementing the government's reform programme is key,” said Onno Ruhl, World Bank country director in India. “...some key reforms, most notably the implementation of the GST can be a potential game changer for India,” he said.
