World Bank projects 6.4% economic growth in India in 2015

Speaking at the Vibrant Gujarat summit, President Jim Yong Kim said the World Bank was committed to catalysing a vibrant India

Indian economy is likely to grow at 6.4% in 2015 and accelerate further in the next year on the back of steps being taken by the Narendra Modi-led NDA government, World Bank President Jim Yong Kim said today.

Speaking at the Vibrant Gujarat summit here, he said the World Bank was committed to catalysing a vibrant India and there is much reason for optimism.

"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% this year and even faster in 2016," he said.

After slowing to sub-five percent growth in the previous two financial years, the economy has started showing signs of pick-up as it expanded by 5.7% and 5.3% in the second and third quarter of 2015.

The World Bank President said 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.

Jim said he was "very encouraged" by the recent proposal of a Constitution amendment bill for Goods and Services Tax. 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.

He was also encouraged to see that the Prime Minister has focused on programmes to promote the broad sharing of the benefits of growths.

The World Bank had a "deep interest" in promoting policies and supporting projects that maximise sustainable and inclusive economic growth, he added.