Current Affairs - Economy - Discussion

The World Bank (WB), in its biannual economic update "South Asia Economic Focus (Fall 2017)", has reduced India's GDP growth forecast to 7.0% for 2017-18 from 7.2% estimated earlier. As per report, the unexpected slowdown in India's growth story is because of the delayed consequence of demonetization, sharp decline in the growth rate of public expenditures and uncertainty created by the introduction of Goods and Services Tax (GST). Apart from WB, Both the Asian Development Bank (ADB) as well as the Organisation for Economic Cooperation and Development (OECD) have also cut their growth projections for India to 7% and 6.7%, respectively, for fiscal 2017-18.