GST complexities and uncertainties hitting the India’s economic momentum
The World Bank in its biannual economic update of ‘South Asia Economic Focus’ cited about a dipping GDP for India – from 8.6% in 2015 to 7.0% in 2017. It also suggested, that a true balance of public spending coupled with the private investments could do the trick and bring it on to 7.3% by 2018.
The World Bank saw ‘demonetization’ and ‘complexities and uncertainties around GST’ as the two major contributors for a plunging GDP. The decline in the Indian GDP has also infected the overall growth rate of South Asia, which has stepped down to the 2nd place after East Asia and the Pacific.
The bank foresees that the slowdown will continue for this year and the economic upsurge and an inclined GDP will start reappearing again in the early 2018.
The World Bank also stated and projected in its report about the Indian GDP will touch the 7.4% levels by 2020 gradually, majorly fuelled in by a recovery in private investments, which are expected to pour in due to the recent increase in the public Capex [capital expenditure], passage of demonetization and GST post effects and an overall stimulating atmosphere of FDI.
As reported in Money Control.