The World Bank has now stated that India will have a substantial increase in the growth rate of India. The Bank also said that an ambitious government had been instrumental in the potential of economic growth of the country, compared to other, still developing countries. The projected growth for India has been predicted at 7.3 per cent in 2018, and a stable 7.5 in the later two years. This is a thrilling news for the Modi Government, as it has been repeatedly criticized for decisions relating to Demonetization, and the implementation of GST (Goods and Services Tax). Ayhan Kose, the Director of Development Prospects Group, World Bank has stated in an Interview with a publication that, that even though India has suffered some set backs in the two years, it shouldn’t be the sole focus of the metrics, and he expects the economy to grow in the coming years, more than other countries.
He said that compared to China, whose rate growth has slowed down, projected to be 6.4 in 2018, and dropping to 6.3 and 6.2 in coming yeas, India has shown consistently healthy growth numbers, despite what the controversies about Demonetization might lead one to believe.
But it is important that, to realize the potential of its growth, India will have to invest wisely, while also increasing the Education rate, improve the labor market, health reform etc. Kose said that it is crucial that India improves the rate of female labor participation, because it is still very low, but it the authorities are able to utilize them properly, that could be an advantage as well. Unemployment is another issues that needs to dealt with, because as India emerges as the youngest nation in the world in a few years, it is important that the youth finds proper jobs that take the advantage of their capabilities and does not waste them in any way.