World Economy

WB May Revise India Growth Forecast

WB May Revise India Growth ForecastWB May Revise India Growth Forecast

World Bank chief economist Kaushik Basu Saturday indicated that the bank may revise its GDP growth projection for India after it goes for a stock-taking in a few months.

“There could be some changes in the January review of India’s growth forecast,” PTI quoted Basu as saying.

He was responding to media queries on whether failure of the ‘Center to Get the Goods and Services Tax Bill Passed’ will have an impact on the projection.

“Decision-making and reforms can have an impact in terms of growth rate and the fact that a couple of important decisions did not go through could have an impact. But India is dominating for a couple of reasons,” Basu said.

Recession in Brazil and Russia and slowdown in China have made India the leading economy in terms of growth prospects for the first time this year, he said.

Until October, the World Bank retained India’s growth forecast at 7.5% for 2015-16 and expected it to be 7.8% in 2016-17 and 7.9% in 2017-18.

Basu indicated that India’s dominance in growth will continue due to a couple of reasons. “China has slowed a lot and would go below 7% growth, and Russia and Brazil are in recession,” Basu said.

“But what is helping India is a positive general mood which helps investment climate. The oil price drop is also helping India and Bangladesh.”

He, however, did not clarify on whether the uncertainty over the country-wide sales tax reform would influence the investment sentiment and the projection.