In the next three years, there will be heavy investment in India. Consumption by Indians will also increase. Thus, on account of favourable economic conditions, GDP of the country will grow at the rate of 7.5 per cent. The World Bank has forecast in its report.
According to the World Bank, GDP of China will reduce during this period. With this India will continue to retain the position of being the fastest growing emerging economy. By 2021, growth rate of India is projected to be 1.5 per cent more than China’s 6 per cent.
The World Bank in its ‘Global Economic Prospects’ said that India is estimated to have grown 7.2 per cent in fiscal year 2018-19. GDP growth rate of India is projected at 7.5 per cent in fiscal year 2019-20 and this will continue through the next two fiscal years.
According to the World Bank, China’s growth rate in 2019 is projected to be dropped to 6.2 per cent and then subsequently to 6.1 per cent in 2020 and 6 per cent in 2021. On the other hand, Pakistan’s growth is expected to slow further to 2.7 per cent in fiscal year 2019-20, as domestic demand remains depressed.
The World Bank said that India’s urban consumption was supported by a pickup in credit growth. Its rural consumption was hindered by soft agricultural prices. On the production side, robust growth was broad-based, with a slight moderation in services and agricultural activity accompanied by an acceleration in the industrial sector. Services activity in the country softened mainly due to slowing trade, hotel, transport, and communication activity. The industrial sector benefited from strong manufacturing and construction with solid demand for capital goods.