The World Bank in its ‘2018 Global Economics Prospect’ report, has expressed hopes that India’s Gross Domestic Product (GDP) will grow at 7.3 percent in the year 2018 and rise further to 7.5 percent in the following two years. It also observed that the country’s economy has enormous growth potential if compared to other emerging economies of the world, as it benefits from government’s comprehensive reforms. Despite initial setbacks from demonetisation and Goods & Services Tax (GST), it has projected the country’s GDP to have grown at 6.7 percent in 2017.
According to the report, to materialise its potential, India needs to take steps to boost investment prospects. It also noted that there are measures underway to do in terms of nonperforming loans and productivity. It also pointed out that on the productivity side, India has enormous potential with respect to secondary education completion rate. It added that all in all, improved labor market reforms, education and health reforms as well as relaxing investment bottleneck will help improve India's prospects.
The report further asserted that reducing youth unemployment is critical, and pushing for private investment, where problems are already well-known like bank assets quality issues and if these are done, India can reach its potential easily and exceed. It also said that India's growth potential would be around 7 percent for the next 10 years. It also said that the Indian government is very serious with GST being a major turning point and banking recapitalisation programme is really important. It added that the Indian government has already recognised some of these problems and undertaking measures and willing to see the outcomes of these measures.