India recovers from impact of demonetisation, GST:WB | 2018-04-17 |

India recovers from impact of demonetisation, GST:WB

    17 April, 2018 12:00 AM printer

NEW DELHI: TheIndianeconomyhasrecovered from the adverse impacts of demonetisation and Goods and Services Tax and is projected to grow by 7.3 per cent in 2018 and 7.5 per cent in 2019, the World Bankhassaid. IndianrecoverywillliftSouthAsiaasa regionandmakeittheworld’sfastestgrowing again, possibly even widening the lead over East Asia and the Pacific, said the World Bank’s bi-annual South Asia Economic Focus report released on Sunday . It willdriveSouthAsiagrowthto6.9percent in2018and7.1percentin2019,reportAgencies. “SouthAsiahadlosttheleadasIndiadeceleratedforaboutfivequarters,andnowit is clear that India is bouncing back,” the Bank’s chief economist for South Asia MartinRamasaidinaninterview . “Theaccelerationof growththatwesee in the region is not necessarily that all countriesintheregionaredoingmuchbetter ,it’samixedpicture,butgiventhesizeof India, India’s bouncing back is driving the growth,”headded. But job creation is a concern. Despite growth,Indiawasnotcreatingenoughjobs. The report said: “India must create 8.1 million jobs a year to maintain its employment rate, which has been declining largelyduetowomenleavingthejobmarket.” The decline on account of women dropping out is “happening in areas that are borderline between urban and rural (and) as farming jobs disappear and other types of jobsdonotappear ,”saidRama,referring toexistingresearch. He added: “In the traditional village societies, working on the farm was a bit like workingathomebutnowyouarebecoming urban and you have to go somewhere” else such as construction and other small servicesectorwork. India grew by an estimated 6.7 per cent in 2017 as per the World Bank’s estimates (there are several counts, including one by India)andisforecasttogrowby7.3percent in 2018, and 7.5 per cent in both 2019 and 2020.