India’s GDP growth rate is expected to reach 7.5 percent in 2019-20. The main reasons behind the investment, particularly private investment, improved demand and improving exports are the main reasons. This is what the World Bank said in a report.
The World Bank said in a report released on Sunday in South Asia that the GDP growth rate in fiscal year 2018-19 was 7.2 percent. This report was released before the meeting of World Bank and International Monetary Fund. According to the report, the first three quarterly figures show that the growth is widespread. Industrial growth increased to 7.9 percent The reduction in the service sector, it compensated it. At the same time, the growth rate of agriculture sector has been strong at 4 percent.
According to the report, domestic consumption remains the main factor in terms of demand, but stable capital formation and exports both contributed to the increase at an increased rate. The increase in the various sectors in the last quarter is likely to remain balanced. It has been said that the position of inflation remained soft during most of the year 2018-19. World Bank said that India’s Gross Domestic Product (GDP) growth rate is expected to grow marginally to 7.5 percent in the current financial year 2019-20.
The main reason behind this will be the key reason for investment, especially private investment, improving exports, increasing consumption. According to the report, due to strong growth and improvement in food prices, inflation could go up to four percent. The current account deficit and the fiscal deficit are both likely to be soft. According to the World Bank report, the current account deficit is expected to be 1.9 per cent of GDP due to the improvement in India’s exports and the softening of the oil prices on the external front.
It states that the integrated fiscal deficit (including states) on the internal market can fall from 6.2 to 6.0 percent of GDP in 2019-20 and 2020-21 respectively. The deficit of the center can remain at 3.4 level of GDP in 2019-20. Adjustment will be on the states.
According to the report, in July 2018, the rate of inflation has declined sharply in the exchange rate of rupee with the fall in the price of food items and the softening of oil prices. World Bank said that gross inflation was 2.6 percent in February 2019 and it was 3.5 percent in 2018-19. It is less than the target of four percent of the Reserve Bank. Due to this, the central bank has cut the repo rate.
