World Bank report: In 2018, Chinese economy is estimated to have grown by 6.5% as against India's 7.3%Washington:India's GDP (gross domestic product) is expected to grow at 7.3 per cent in fiscal year 2018-19, and 7.5 per cent in following two years, World Bank has forecast, attributing it to an upswing in consumption and investment.
The bank said country will continue to be fastest growing major economy in world.
China's economic growth is projected to slow down to 6.2 each in 2019 and 2020 and 6 per cent in 2021, according to January 2019 Global Economic Prospects report released by World Bank on Tuesday.
In 2018, Chinese economy is estimated to have grown by 6.5 per cent as against India's 7.3 per cent.In 2017, China with 6.9 per cent growth was marginally ahead of India's 6.7 per cent, mainly because slowdown in Indian economy due to demonetisation and implementation of Goods and Services Tax (GST), report said."India's growth outlook is still robust.
India is still fastest growing major economy," World Bank Prospects Group Director Ayhan Kose told PTI in an interview.
"With investment picking up and consumption remaining strong, we expect India to grow 7.3 per cent in fiscal year 2018-2019, and average 7.5 per cent in 2019 and 2020.
India registered quite a bit of pick up in doing business ranking.
The growth momentum is there (in India)," Mr Kose told PTI.In India, growth has accelerated, driven by an upswing in consumption, and investment growth has firmed as effects of temporary factors wane, World Bank said in its latest report.
Domestic demand has strengthened as benefits of structural reforms such as GST harmonisation and bank recapitalisation take effect.
"India's growth accelerated to an estimated 7.3 per cent in FY2018-19 (April to March) as economic activity continued to recover with strong domestic demand.
While investment continued to strengthen amid GST harmonisation and a rebound of credit growth, consumption remained major contributor to growth," World Bank said.
According to report, India's GDP is forecast to grow by 7.3 per cent in FY2018-19 and 7.5 per cent thereafter, in line with June forecasts.
Private consumption is projected to remain robust and investment growth is expected to continue as benefits of recent policy reforms begin to materialise and credit rebounds.Strong domestic demand is envisioned to widen current account deficit to 2.6 per cent of GDP next year.
Inflation is projected to rise somewhat above midpoint of Reserve Bank of India's target range of 2 to 6 per cent, mainly owing to energy and food prices, bank said.
It said recent introduction of GST and steps toward demonetisation are expected to encourage a shift from informal to formal sector."India's recent growth numbers suggest that economy remains robust despite temporary setbacks (due top demonetisation and GST)," Mr Kose said.
The World Bank's estimate suggests that India's potential growth rate is around seven per cent, and is expected to remain around seven per cent, he said in response to a question.
"The fact is that Indian economy is being able to deliver growth slightly above its potential is a very good sign," he added.
Refraining from commenting on economic performance of Modi government that too in an election year, World Bank official said growth performance of India as compared to other emerging markets has been quite impressive."India's growth performance has been quite impressive.
Year after year it has delivered strong numbers around its potential growth," he said.