Skip to content
Search

Latest Stories

Reforms undertaken by Prime Minister Modi , will reflect in mid and long-term growth : World Bank chief

"The reform process has been significant. We think that certainly in the medium and long term, the growth will reflect the seriousness of Prime Minister Modi's government in making those reforms," Jim Yong Kim told reporters at the start of the annual meeting of the IMF the World Bank here. Kim was responding to a question on recent slowdown of the Indian economy. Both the World Bank and the IMF have downgraded India's growth projections.

The reforms undertaken by Prime Minister Narendra Modi have been "significant" and the results would be reflected in the mid and long-term growth figures, the World Bank chief said today, days after the global lender forecast that India's GDP may slowdown to 7% in 2017.


The World Bank yesterday forecast that India's GDP may slowdown from 8.6% in 2015 to 7% in 2017 because of disruptions by demonetization and the GST.

The IMF has also lowered India's growth projection to 6.7% in 2017, 0.5 percentage points less than its previous two forecasts and slower than China's 6.8%. Last week, the World Bank chief had said that the recent slowdown in India's economic growth is short-term and an "aberration" mainly due to the temporary disruptions in preparation for the GST.

"Our team feels that the slowdown has been because of the waiting for the passage of goods and services tax, Kim said in response to a question on India s growth slowdown."But the goods and services tax we have to understand is something that India has been talking about for a long time, well before Prime Minister Modi took power, he said.

The goods and services tax is going to stop things like trucks being stalled for such a long time in transporting things through India because at every border they have to stop and go through a complicated tax process, he explained.

"The goods and services tax would be very good for Indian growth, but for now the sense is that companies are waiting until that passes before really making investment and taking action. So, our sense is that this (slowdown in growth) is temporary, said the World Bank President.

In his answer, Kim was very appreciative of the reforms being undertaken by Modi in the last three years.

"Prime Minister Modi took a very different approach to our doing business report. And his approach was we are going to move up quickly and we are going to do the things that we need to do to reform the business environment, he said. The actions that Modi has taken are "really quite substantial", he said.

The Ease of Doing Business Report is slated to come out soon. "We'll wait to see what happens on the business report this year but we've been very encouraged with the reforms that he has already taken.

He knows that there are more to do," he said. "I won't be specific about them because they have to prioritize them for the government, Kim said when asked what steps India needs to take. But the reform process has been significant," Kim said.

More For You

Shein-Reuters

Shein had aimed to go public in London in the first half of this year, subject to regulatory approvals in the UK and China. (Photo: Reuters)

Shein cuts valuation to £40 billion for London listing

SHEIN is preparing to lower its valuation to around £40 billion for a potential initial public offering (IPO) in London, according to three Reuters sources familiar with the matter.

This is nearly 25 per cent lower than the company's 2023 fundraising valuation as it faces increasing challenges.

Keep ReadingShow less
Northern-Superchargers-Getty

Ben Stokes and Matthew Short of Northern Superchargers walk out to bat during The Hundred match between Manchester Originals and Northern Superchargers on August 11, 2024 in Manchester, England. (Photo: Getty Images)

Sunrisers Hyderabad to acquire Northern Superchargers in £100 million deal

INDIAN Premier League franchise Sunrisers Hyderabad is set to become the first full owners of an English Hundred team after agreeing to buy Yorkshire’s Northern Superchargers for a reported £100 million.

The Sun Group will be the third IPL-linked investor in the eight-team Hundred competition, following Reliance Industries, which owns Mumbai Indians, and RPSG, which runs Lucknow Super Giants.

Keep ReadingShow less
BT-Getty

A view of the British Telecom (BT) headquarters in central London. (Photo: Getty Images)

BT to remove diversity targets from manager bonuses

BT will remove diversity, equity, and inclusion (DEI) targets from its manager bonus scheme, replacing them with a measure of overall employee engagement.

The change, set to take effect in April, follows consultation with major investors and has received “strong support,” according to the company, The Telegraph reported.

Keep ReadingShow less
India's central bank cuts interest rates for first time since 2020

The central bank announced a 25-basis-point cut in the benchmark repo rate to 6.25 per cent, the rate at which it lends to commercial banks.. (Photo credit: Reuters)

India's central bank cuts interest rates for first time since 2020

THE RESERVE BANK OF INDIA (RBI) reduced interest rates on Friday for the first time in nearly five years, citing concerns over economic growth despite inflation risks.

The central bank announced a 25-basis-point cut in the benchmark repo rate to 6.25 per cent, the rate at which it lends to commercial banks.

Keep ReadingShow less
Sri Lanka seeks to negotiate with Adani over renewable energy plants

Gautam Adani

Sri Lanka seeks to negotiate with Adani over renewable energy plants

SRI LANKA’S government started talks with India’s Adani Group to lower the cost of power from two wind power projects the group will build in the island nation’s northern province, the cabinet spokesman said last Tuesday (28).

Sri Lanka has been reviewing the group’s local projects after US authorities in November accused billionaire founder Gautam Adani and other executives of being part of a scheme to pay bribes to secure Indian power supply contracts. Adani has denied the allegations.

Keep ReadingShow less