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Reforms undertaken by India significant: World Bank chief Jim Yong Kim

After, World Bank forecast that India's GDP may slowdown from 8.6% in 2015 to 7% in 2017

Press Trust of India  |  Washington 

Jim Yong Kim, World Bank, World Bank president
World Bank President Jim Yong Kim speaks during a news conference at World Bank-IMF Annual Meetings in Washington. (Photo: AP/PTI)

The undertaken by Prime Minister have been "significant" and the results would be reflected in the mid and long-term figures, the chief said today, days after the global lender forecast that India's GDP may slowdown to 7% in 2017.

"The reform process has been significant. We think that certainly in the medium and long term, the will reflect the seriousness of Prime Minister Modi's government in making those reforms," Kim told reporters at the start of the annual meeting of the the here.

Kim was responding to a question on recent slowdown of the Indian economy. Both the and the have downgraded India's projections.

The World Bank yesterday forecast that India's GDP may slowdown from 8.6% in 2015 to 7% in 2017 because of disruptions by and the

The has also lowered India's growth projection to 6.7% in 2017, 0.5 percentage points less than its previous two forecasts and slower than China's 6.8%.

Last week, the World Bank chief had said that the recent slowdown in India's economic growth is short-term and an "aberration" mainly due to the temporary disruptions in preparation for the

"Our team feels that the slowdown has been because of the waiting for the passage of goods and services tax, Kim said in response to a question on India's growth slowdown.

"But the goods and services tax we have to understand is something that has been talking about for a long time, well before Prime Minister Modi took power, he said.

The is going to stop things like trucks being stalled for such a long time in transporting things through because at every border they have to stop and go through a complicated tax process, he explained.

"The GST would be very good for Indian growth, but for now the sense is that companies are waiting until that passes before really making an investment and taking action. So, our sense is that this (slowdown in growth) is temporary, said the World Bank chief.

In his answer, Kim was very appreciative of the being undertaken by Modi in the last three years.

"Prime Minister Modi took a very different approach to our doing business report. And his approach was we are going to move up quickly and we are going to do the things that we need to do to reform the business environment, he said.

The actions that Modi has taken are "really quite substantial", he said.

The is slated to come out soon.

"We'll wait to see what happens on the business report this year but we've been very encouraged with the that he has already taken. He knows that there are more to do," he said.

"I won't be specific about them because they have to prioritize them for the government, Kim said when asked what steps needs to take. But the reform process has been significant," Kim said.

First Published: Fri, October 13 2017. 01:19 IST