World Bank seeks GDP growth at 7.5% in FY20

World Bank seeks GDP growth at 7.5% in FY20
Highlights

The real GDP growth is estimated at 7.2 per cent in FY19, the World Bank said in its latest report on South Asia on Sunday ahead of the spring meeting of the World Bank and the International Monetary Fund

Washington: India's GDP growth is expected to accelerate moderately to 7.5 per cent in Fiscal Year 19-20, driven by continued investment strengthening, particularly private-improved export performance and resilient consumption, the World Bank has said.

The real GDP growth is estimated at 7.2 per cent in FY2018-19, the World Bank said in its latest report on South Asia on Sunday ahead of the spring meeting of the World Bank and the International Monetary Fund.

Data for the first three quarters suggest that growth has been broad-based. Industrial growth accelerated to 7.9 per cent, making up for a deceleration in services. Meanwhile, agriculture growth was robust at four per cent.

On the demand side, domestic consumption remained the primary growth driver, but gross fixed capital formation and exports both made growing contributions.

Over the last quarter, growth is expected to remain balanced across sectors, the report said. Inflation dynamics have been subdued over most of FY18/19, the report said.

The World Bank said India's GDP growth is expected to accelerate moderately to 7.5 per cent in FY19/20, driven by continued investment strengthening-particularly private- improved export performance, and resilient consumption.

With robust growth, and food prices poised to recover, inflation is expected to converge toward four per cent, it said, adding that both the current account and the fiscal deficit are expected to narrow.

"On the external front, improvements in India's export performance and low oil prices should bring about a reduction in the current account deficit to 1.9 per cent of GDP," it said.

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