Giving a positive indication on India’s economic growth, the World Bank predicted that India’s GDP growth is expected to accelerate moderately to 7.5 per cent in Fiscal Year 19-20, driven by continued investment strengthening, particularly private-improved export performance and resilient consumption.
The real GDP growth is estimated at 7.2 per cent in FY18/19, the World Bank said in its latest report on South Asia, ahead of the spring meeting of the World Bank and the International Monetary Fund.
Data for the first three quarters suggest that growth has been broad-based. Industrial growth accelerated to 7.9 per cent, making up for a deceleration in services. Meanwhile, agriculture growth was robust at four per cent.
On the demand side, domestic consumption remained the primary growth driver, but gross fixed capital formation and exports both made growing contributions.
Over the last quarter, growth is expected to remain balanced across sectors, the report said. Inflation dynamics have been subdued over most of FY18/19, the report said.