India to be fastest growing economy in 2016: World Bank

By Rajesh Mishra

New Delhi, Jan 8 (ANI): The World Bank has projected that India would comfortably remain the fastest growing economy in 2016, at a rate more than a percentage point higher than that of China.

In its report, the World Bank has projected the Indian economy to grow at 7.8 percent in 2016 and China to grow at a more modest 6.7 percent. The world economy as a whole would grow at 2.9 percent it estimated, a modest upturn from the 2.4 percent growth estimated for 2015.

The Indian economy is constantly expanding with new opportunities in various sectors.

The liberalization began in India after 1991 in the way of rapid development that took place. As part of this initiative, lenders were roped in from various markets. India is at the moment the third largest economy in the world after the US and China.

Prime Minister Narendra Modi-led government is coming up with new initiatives and programmes in its endeavor to boost the Indian economy. With a promise to build 100 new cities and high-speed railways, the government has left no stone unturned to accomplish its mission.

Union Finance Minister Arun Jaitley has repeatedly said that the Good and Services Tax (GST) would be implemented soon.

While making these projections, the Bank report introduced a caveat saying that “a faster-than-expected slowdown in China combined with a more protracted deceleration in other large emerging markets is a risk”. It said this remained a low-probability scenario, but if it did happen there could be a significant contagion risk for the rest of the world.

“Compounding this risk is the possibility of a protracted decline in potential growth throughout emerging and developing economies, persistently subdued growth in major high-income countries, and an escalation of geopolitical tensions,” the report warned, adding that a sudden readjustment of expectations about the future trajectory of US interest rates could also play a destabilizing role by combining with domestic fragilities and policy uncertainties in some developing countries. (ANI)

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