New Delhi: The World Bank on Wednesday said that Indian economy is "credible" and expected to grow at 7.3 percent in FY 2018-19 and 7.5 percent in FY 2019-20 driven by private consumption, investment, and exports.
For the current financial year ending on March 31, the Washington-based multi-lateral funding agency has projected the economy to grow at 6.7 percent.
India's growth has been credible over the long run with growth averaging at 7 percent in the last decade, it said. "India's GDP growth saw a temporary dip in the last two quarters of 2016-17 and the first quarter of 2017-18 due to demonetisation and disruptions surrounding the initial implementation of GST (Goods and Services Tax)," World Bank said in its India Development Update.
"The GDP growth is projected to reach 6.7 percent in 2017-18 and accelerate to 7.3 percent and 7.5 percent in 2018-19 and 2019-20 respectively," it said.
Services will continue to remain the main driver of economic growth, it said. Industrial activity is also poised to grow, with manufacturing expected to accelerate following the implementation of GST, it said, adding that agriculture is likely growing at its long-term average growth rate.
"Steadily and slowly, India has been growing. It's a steady growth, volatility has decreased, the growth is driven by one factor unlike China by exports. India's growth is far more diversified through investment, private consumption and exports," said Junaid Ahmad, World Bank Country Director in India while talking to reporters here.