The World Bank has said that India’s GDP growth will remain strong at 7.6 percent in 2016 and 7.7 percent in 2017, while describing South Asia as a global growth hotspot.
“In India, GDP growth will remain strong at 7.6 percent in 2016 and 7.7 percent in 2017, supported by expectations of a rebound in agriculture, civil service pay reforms supporting consumption, increased positive contributions from exports and a recovery of private investment in the medium term,” the World Bank said in the report.
However, India faces the challenge of promoting inclusion, extending gains to a broader range of human development outcomes related to health, nutrition, education and gender, and further accelerating the responsiveness of poverty reduction to growth, said the bi-annual report.
South Asia remains a global growth hotspot, according to the report and has proven resilient to external headwinds such as slowing remittances, uncertainty around stimulus policy in advanced economies, and China’s slowdown.
Domestic has remained the main challenges remain along wit policy uncertainty as well as fiscal and financial vulnerabilities.
India’s economic growth remained robust, which is expected to support continued poverty reduction.