The World Bank maintained a robust growth forecast for India pegging its GDP growth rate at 7.3% in the fiscal year 2018-19, and 7.5% in the following two years. China’s economic growth is projected to slow down to 6.2% each in 2019 and 2020 and 6% in 2021, according to the January 2019 Global Economic Prospects report released by the World Bank on Tuesday.
India remained ahead of China to retain the tag of the world’s fastest growing large economy despite global factors such as surge in global oil prices, strengthening US dollar, the US Federal Reserve hiking interest rate for the fourth time in a year and US-China trade war during 2018. The Indian economy registered an impressive GDP growth rate of 8.2% in the quarter ended June 30 of fiscal 2018-19 though the growth rate slipped to 7.1% in the second quarter. According to Niti Aayog Vice-Chairman Rajiv Kumar, the government is targeting GDP growth rate of 7.8% in calendar year 2019.