World Bank projects India's growth rate at 7.3% for the current fiscal

Annette Crawford
April 17, 2018

The World Bank has said that India needs 8.1 million jobs every year to maintain its employment rate. Despite accelerating global growth and trade, exports remain weak. The report stated that India's economy has recovered from demonetization and Goods & Services Tax.

Further, the apex worldwide financial institution forecasted a rate of growth of 7.5 percent for 2019 and 2020.

According to Robert Beyer, the author of the report, "growth is important, but even very high growth will alone not be enough to increase South Asia's employment rate".

It also said the region could extend its economic lead over East Asia and the Pacific.

Much of the progress, however, is driven by India's growth rebound and is not consistent across countries.

Looking ahead, return to business as usual and subsequent rebalancing of growth drivers towards investment could support acceleration of GDP growth to 7.4 per cent by FY 2019, it said.

"More than 1.8 million young people will reach working age every month in South Asia through 2025 and the good news is that economic growth is creating jobs in the region", said Martin Rama, World Bank South Asia region chief economist. "Progress on fiscal consolidation is slow, and deficits are high", a World Bank release said.

The agreement was signed by Sameer Kumar Khare, joint secretary, department of economic affairs, ministry of finance, on behalf of the Centre, P. Sampath Kumar, resident commissioner & CEO, Meghalaya Basin Development Authority (MBDA), on behalf of the state government, and Hisham Abdo, acting country director, World Bank India. The institution further said that the employment rate is declining as women are leaving the job market.

Around 11.7 million jobs need to be created each year to arrest the fall in employment rates.

Other reports by Iphone Fresh

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