NEW DELHI: India, the fastest growing major economy in the world, is expected to grow at 7.2 per cent in the current fiscal and up to 7.7 per cent by 2019-20 on strong fundamentals, reform momentum and improving investment scenario, according to World Bank’s India Development Report released on Monday.
“Economic activity ought to accelerate at 7.2 per cent in 2017-18 from 6.8 per cent in 2016-17. Growth increases gradually to 7.7 per cent by 2019-20, underpinned by recovery in private investments,” said the report.
The report noted that demonetisation caused a slight disruption to India’s growth recovery.
“India remains the fastest growing economy in the world and it will get a boost from GST, which will reduce the cost of doing business for firms, reduce logistics cost of moving goods across states, while ensuring no loss in equity,” said Junaid Ahmad, World Bank Country Director in India.
On the subject of declining female participation in jobs, Ahmad said that the rising incomes allow more women to stay at home. “The evidence, however, shows that fewer jobs in agriculture have not been replaced by alternative jobs considered suitable for women.”
Senior Country Economist and the main author of the India Development Update Frederico Gil Sander said, “India’s female labour force participation rate is uniquely low for all levels of education.” He said 65 per cent of Indian women with college degrees are not working. It is 41 per cent in Bangladesh.
Only 27 per cent of women of 15 years or older are working or actively looking for jobs in India, the report noted. Three out of every five prime working age Indian women (26-45 years) are not economically active, meaning that they are neither working on a farm or in businesses nor are they earning any wage.
Even among countries with similar income levels, India is at the bottom at 120th among 131 countries, the report said. The other countries are Yemen, Pakistan and Egypt.
The report suggests that the government create safe, flexible and well-paying jobs for a large number of women who are currently not in the labour market.