India retains fastest-growing economy tag; World Bank forecasts 7.3% growth
What's the story
The World Bank has forecast a growth rate of 7.3% for India in the fiscal year 2018-19 and 7.5% in FY 2019-20, making it the fastest-growing country among major emerging economies.
"This reflects robust private consumption and strengthening investment," the Bank said in its June 2018 edition of Global Economic Prospect report.
India's growth projections remain unchanged since its January 2018 forecast.
Here's more.
Economy growth
South Asia's economy to strengthen to 6.9% in 2018
Ayhan Kose, Director of Development Prospects Group at World Bank, said India's economy is robust, resilient and has potential to deliver sustained growth.
World Bank said, due to India's growth, South Asia's economy is also projected to strengthen to 6.9% in 2018 and 7.1% in 2019.
India's growth potential is about 7%, Kose said, attributing it to major economic reforms undertaken by NDA government.
China's Decline
China's growth projected to slow down to 6.2% by 2020
World Bank also said China is expected to slow down from 6.9% in 2017 to 6.5% in 2018, 6.3% in 2019 and 6.2% in 2020.
Kose said, currently, India is in a very strong position and it has a potential to sustain this growth.
Seeking to increase female labor force participation, Kose said, India has room for improvement in secondary education completion rates.
Risks
Emerging market economies are facing risks due to global development
Kose noted there are risks that all emerging market economies are facing because of global economic developments.
Giving an instance, he said, the disorderly tightening of global financial conditions could have implications for emerging market economies.
India is facing higher oil prices like other oil importers, Kose explained.
The Bank said in India, investment growth has firmed recently, as effects of temporary factors wane.
Growth
South Asia's growth is expected to touch 7.2% by 2020
The World Bank, in its latest report, also said that the growth of South Asia is also expected to reach 7.2% by 2020 amid robust domestic demand in India as temporary policy-driven disruptions fade.
Elsewhere in the region, ongoing recoveries in Bangladesh, Pakistan and Sri Lanka are expected to be accompanied by moderating activity in Afghanistan, Bhutan and Maldives.