World Bank has said the recent slowdown in India’s economic growth is an aberration mainly due to the temporary disruptions in preparation for the Goods and Services Tax (GST).
Talking to reporters in washington yesterday, World Bank President Jim Yong Kim said, the GST is going to have a hugely positive impact on the Indian economy. Mr Kim was responding to questions on slowdown in India’s growth in the first quarter. India’s GDP grew 5.7 per cent on a year-on-year basis during the April-June period. He said, this slowdown is temporary and will get corrected in the coming months.
Ahead of the annual meeting, Mr Kim said after years of disappointing growth, the global economy has begun to accelerate, and trade is picking up as well, but investment remains weak. Finance Minister Arun Jaitley will be leading the Indian delegation to the annual meeting next week.