Noting in its report on the South Asia Economic Focus (highlighted theme), World Bank is positive about the growth and retention of India GDP of 7.6% to 7.7% in 2017. The bases for such an outlook are consumption supported by civil service pay reforms, private investment recovery in medium term, highly positive contributions from exports, agriculture picking up and the likes.
On the flip side however, there are certain indispensable challenges of widening reach of human development goals in terms of gender, health, nutrition and education, promotion of inclusion (of women and scheduled tribes) and contribution of poverty debility that could rather serve as potential convalesce to the overall growth of Indian GDP if catered to with dedicated effort.
South Asia is targeted as the global growth opportunity which has proven its flexibility to external headwinds like slowing remittances, the slowdown of China, and uncertainties about advanced economies policies etc.
Alongside a comparative outlook of economic activities of China, Pakistan and Bangladesh, the Indian economy has been reported to remain robust basis flourishing agriculture business activities, inclusion of GST bills and civil pay revisions etc. The implications of these growth routes that are expected to remain progressive shall be seen supporting sustainability of growing household income and GDP as well as can be inferred from the report quoting the following :-
“This year is expected to see some convergence in rural and urban economies, supported by stimulating policies, such as passage of GST and civil pay revisions, along with good monsoons. Re-balancing of growth drivers will in turn support the sustainability and inclusiveness of GDP and household income growth going forward.”
Indubitably, with the economy soaring, a prudent approach of striking and maintaining a balance between the channeling of growth and meeting of challenges is necessary to optimize the goals practically and efficiently.
Written by Namisha, ICoFP