India's economy to grow by 7.8 percent | Fusion - WeRIndia

India’s economy to grow by 7.8 percent

India’s economy to grow by 7.8 percent

According to the World Bank, India will have a growth of 7.8 percent in 2016 and 7.9 per cent in the next two years in its economy. The World Bank also predicted that in the upcoming three years, India will be the fastest growing economy in the world. As per the prediction, India would outpace China.

The growth of Chinese economy is expected to slow down further and India still remains a bright spot in the global economy even with the recent fall in oil prices. The World Bank released these predictions in its latest Global Economic Prospect report which is released bi-annually. According to the report, the World Bank reduced India’s growth rate by a slight 0.2 per cent in 2015 and 0.1 per cent in both 2016 and 2017.

According to the estimates of the World Bank, China grew at an estimated 6.9 per cent in 2015 which is 0.3 per cent less than its June projection. As per the same report, China is estimated to grow at 6.7 per cent in 2016 and 6.5 per cent each in 2017 and 2018. Furthermore, the growth rate projections is 0.3 and 0.4 percent in 2016 and 2017 respectively.

The World Bank also predicted that Russia and Brazil will remain in recession in 2016. As per the report, the growth of India’s economy remained strong when compared to other major developing countries. If further said that due to the strong investor sentiment and the positive effect on real incomes of the recent fall in oil prices, the economy stood strong.

Furthermore, the report added that the Reserve Bank of India has rebuilt reserves while net FDI flows remained positive. Due to the ongoing fiscal consolidation in India, the central government’s fiscal deficit has been reduced to approximately 4 per cent of GDP from 7.6 per cent in 2009.

Image Credit: Image by Nattanan Kanchanaprat from Pixabay (Free for commercial use)

Image Reference:

Leave a Reply

Your email address will not be published.