India’s economy will grow at 7.2% in 2017-18 and 7.7% in 2019-20, says a report from the World Bank. The report says that the implementation of GST will give a great boost to economy and revenue.
A leading World Bank official placed in India said that implementation of GST will reduce the cost of doing business and reduce the cost of moving goods, besides checking the loss in equity. He further said that low women participation in the workforce has been a matter of concern and increased women participation will further boost India’s economic growth.
The World Bank official also said that India has been one of the fastest growing economies in the world, and the implementation of GST will further boost its growth.
He said that due to demonetisation and resultant cash crunch, a modest slowdown is expected during 2016-17 when the economy will grow at 6.8%. It will recover in 2017-18 to 7.2% and speed up to 7.7% in 2018-19.
The report says that reforms like the insolvency code and dealing will bad loans of public sector banks will be key factors in country’s economic growth.
The World Bank report also said that low private investments, low credit growth and rising anti-trade rhetoric globally are major roadblocks towards growth.
The report says that India has one of the lowest women participation rate in the world and its ranks 120th. This rate has been declining since 2005. Women’s paid employment help them have a role in decision making besides empowering them socially.
According to data available for 131 countries, India holds a bottom rank with Yemen, Pakistan and Egypt.
The report also says that after GST, job creation, especially for women, should be the next priority for the government.