HYDERABAD: Amid wide expectations that the country’s economic growth is like to be about 5.5-5.6 per cent during the current fiscal, the World Bank has projected that it is likely to grow at 6.4 per cent in 2015.
The projection comes at a time when the country witnessed After sub-five per cent growth in the previous two financial years.
However, the economy has started showing signs of pick-up as it expanded by 5.7 per cent and 5.3 per cent in the second and third quarter of 2015.
According to Jim Yong Kim, President, World Bank, the economy is likely to accelerate further in the next year on the back of steps being taken by the Narendra Modi-led NDA government.
Speaking at the Vibrant Gujarat summit on Sunday, he said the World Bank was committed to catalysing a vibrant India and there is much reason for optimism.
“We project that India will be a bright spot in an otherwise medium global economic outlook. (The) economy, according to our projections, is expected to grow 6.4 per cent this year and even faster in 2016,” he said.
He said he encouraged to see that the Prime Minister has focused on programmes to promote the broad sharing of the benefits of growths.
The World Bank President said Prime Minister Modi and his government have been quickly putting in place the building blocks for even more rapid growth, streamlining national regulatory structure and promoting social inclusion.
Jim also said he was encouraged by the recent proposal of a Constitution amendment bill for Goods and Services Tax. The proposed new indirect tax regime, he said, offers an opportunity to make it substantially easier to do business in India.
“GST will create one common market and substantial saving for companies on logistics, especially if the structure of the GST is uniform,” he added.