Noting that India is recovering from the temporary adverse effects of demonetisation, the World Bank has projected a strong 7.2 % growth rate for India this year against 6.8 % growth in 2016. Even as the World Bank has revised India’s growth figures by 0.4 percentage points as compared to its January forecast, India remains the fastest growing major economy in the world, the World Bank officials said. The World Bank in its latest Global Economic Prospects, projects India’s growth to 7.5 % in 2018 and 7.7 % in 2019. In India, recent data indicate a rebound this year, with the easing of cash shortages and rising exports. An increase in government spending in India, including on capital formation, has partially offset soft private investment. The government has especially taken steps to address the banking sector weakness, but that remains on the  to-do list. Second (to do list) of course (is the initiative by the government to remove some of the public investments, exactly the right thing to do to stimulate — to try to reinvigorate — private investment, which has been weak.

(The Hindu)