Optimistic over the improving macro-economic fundamentals of the economy, the World Bank has estimated that Indian economy is likely to grow by 6.4% in 2015 and accelerate further in the next year on the back of steps being taken by the Narendra Modi-led NDA government. The World Bank President Jim Yong Kim has asserted that India will be a bright spot in an otherwise medium global economic outlook as government have been quickly taking measures for rapid growth, streamlining national regulatory structure and promoting social inclusion.
World Bank President further stated that the implementation of Goods and Services Tax will improve the business sentiments and create one common market and substantial saving for companies on logistics. However, he asserted that an enduring ‘bias’ on the basis of caste and other factors can impede prosperity of the country.
After registering an average growth rate of 8% during FY08-FY12, Indian economic growth had slowed down to below 5% over the last two financial years. The factors like high interest rate and stubborn inflation, low investments and slow execution of infrastructure projects have impacted country’s economy growth. However, the domestic economy has shown signs of nascent recovery and expanded at 5.5% during first half of this fiscal as compared to 4.9% in the same period of previous fiscal.