World Bank trims India’s growth rate to 7.6%

THE World Bank on Tuesday marginally downgraded India’s growth rate to 7.6% from 7.8% in 2016 even as it said the country will continue to grow faster than its large emerging market peers, reports PTI. The bank in its ‘Global Economic Prospects’ report lowered its 2016 global growth forecast to 2.4% from 2.9% projected in January. It also modified its projections for India’s growth rate in 2017 and 2018 by 2 points to 7.7% growth in both years.

THE World Bank on Tuesday marginally downgraded India’s growth rate to 7.6% in 2016 even as it said the country will continue to grow faster than its large emerging market peers.

The bank in its latest ‘Global Economic Prospects’ report downgraded its 2016 global growth forecast to 2.4% from the 2.9% pace projected in January.

India’s growth too has been downgraded marginally by 0.2%, while that of China remains the same and pegged the Communist nation at 6.7%.

The bank also modified its projections for India’s growth rate in 2017 and 2018 by a marginal down gradation of 0.2% to 7.7% growth in both the years.

“India will continue to grow faster than its large emerging market peers, with growth rates of 7.6-7.7% from fiscal year 2016/17 to fiscal year 2018/19,” it said.

The bank said half a point down grade in the global growth was due to sluggish growth in advanced economies, stubbor nly low commodity prices, weak global trade and diminishing capital flows.

“This sluggish growth underscores why it’s critically important for countries to pursue policies that will boost economic growth and improve the lives of those living in extreme poverty,” World Bank Group President Jim Yong Kim said in a statement.

“Economic growth remains the most important driver of poverty reduction, and that’s why we’re very concerned that growth is slowing sharply in commodity-exporting developing countries due to depressed commodity prices,” Jim said.

The bank said that growth in India picked up to 7.6% in fiscal year 2015/16, a 0.4 percentage point increase over fiscal year 2014/15, driven largely by domestic demand.