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World Bank pegs India's growth at 8 percent next fiscal
World
Bank pegs India's growth at 8 percent next fiscal
Washington, April 14 The World Bank has forecast India's growth
accelerating to 8 percent for the next fiscal and said the country is
well-placed in a region that has not only logged the highest economic expansion
but would benefit the most from cheap oil.
According to the bank's South Asia Economic Focus report, which is released
twice a year, the exports sector in the region remains a cause for worry, even
as the cheaper oil import bill should now trigger a complete revamp of fuel
subsidy regime.
The new projections come soon after international credit rating agency Moody's
revised India's sovereign ratings outlook to "positive" from
"stable". Another major ratings agency Fitch reaffirmed its stable
outlook on India.
The think-tank of the rich nations, the Organisation for Economic Cooperation
and Development (OECD), also endorsed India's economic expansion projections.
“The biggest oil price dividend to be cashed in by South Asia is one yet to be
earned, but it is not one that will automatically transit through government or
consumer accounts,†said World Bank South Asia Chief Economist Martin Rama.
“Cheap oil gives the opportunity to rationalize energy prices, reducing the
fiscal burden from subsidies and contributing to environmental
sustainability," he added.
According to the World Bank, India's GDP (gross domestic product) growth is
expected to accelerate to 7.5 percent in fiscal 2015-16.
"It could reach 8 percent in fiscal 2017-18, on the back of significant
acceleration of investment growth to 12 percent during (FY2016-FY2018),"
the economic focus report said.
"The country is attempting to shift from consumption- to investment-led
growth, at a time when China is undergoing the opposite transition," the
report added.