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Indian economy likely to grow 6.4 percent in 2015

Staff writer ▼ | January 13, 2015
World Bank president Jim Yong Kim said at a summit conference in India's western commercial city Gandhinagar on Sunday that the country's economy is likely to grow by 6.4 percent in 2015 and accelerate further in the next year.
Indian economy
World Bank   Jim Yong Kim:
Speaking at the Vibrant Gujarat summit here, he said the economic growth was backed on steps being taken by the Indian government and the World Bank is committed to catalyzing a vibrant India.

"We project that India will be a bright spot in an otherwise medium global economic outlook. (The) economy, according to our projections, is expected to grow 6.4 percent this year and even faster in 2016," Kim said.

After slowing to around 5 percent growth in the previous two fiscal years, Indian economy has started showing signs of pick-up as it expanded by 5.7 percent and 5.3 percent in the second and third quarter of 2014.

The World Bank president said Indian Prime Minister Modi and his government have been quickly putting in place the building blocks for even more rapid growth, streamlining national regulatory structure and promoting social inclusion.

Kim said he was "very encouraged" by the recent proposal of a Constitution amendment bill for Goods and Services Tax (GST). The proposed new indirect tax regime, he said, offers an opportunity to make it substantially easier to do business in India.

"GST will create one common market and substantial saving for companies on logistics, especially if the structure of the GST is uniform," he added.

Kim also emphasized on India's role in World Bank's aim to end extreme poverty by 2030 and to boost shared prosperity. "We will not be able to turn this vision into reality unless India, home to more than 1.25 billion people, follows a path of rapid growth in which all Indians benefit."