World Bank sees India growth at 6.4% in 2015-16

Posted By: Religare
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World Bank sees India growth at 6.4% in 2015-16
World Bank expects a pickup in Asia's third biggest economy in 2015-16 as the reform-oriented Modi government boosts business and investor sentiment while a recovery in the US economy bolsters exports.

The lender sees the Indian economy expanding by 6.4 per cent in 2015-16 following 5.6 per cent in 2014-15.

"India is benefiting from a "Modi dividend", the World Bank said in a report.

"The Indian economy, 80% of the (South Asia) region's output, is set to grow by 6.4% in 2015-16 after 5.6% in 2014-15", it added.

Prime Minister Narendra Modi has kick-started his reform agenda by launching the ambitious' Make in India' program which seeks to transform India into a global manufacturing base by initiatives such as making it easier for companies to do business in India, while liberilisation of FDI in sectors such as defence, railways, insurance, e-commerce and retail may also bolster economic growth and attract foreign fund inflows into the country.

India's economy grew at the fastest clip in more than two years as GDP expanded by 5.7 per cent in the April-June 2014 quarter.

"India's growth performance remains strong vis-a-vis emerging market peers," the World Bank said.

Factors such as favourable demographics, relatively high savings, and policies and efforts to improve skills and education may enhance domestic market integration and provide impetus to manufacturing activities, the lender said.

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