Adverse Impacts Of Demonetisation and GST Over For India: WB

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New Delhi: The World Bank has said that Indian economy has recovered from the adverse impacts of demonetisation and Goods and Services Tax. The World Bank projected growth for India by 7.3% in 2018 and 7.5% in 2019.
Indian recovery will lift South Asia as a region and make it the world’s fastest growing again, possibly even widening the lead over East Asia and the Pacific, said the World Bank’s bi-annual South Asia Economic Focus report released on Sunday. It will drive South Asia growth to 6.9% in 2018 and 7.1% in 2019.
“South Asia had lost the lead as India decelerated for about five quarters, and now it is clear that India is bouncing back,” the Bank’s chief economist for South Asia Martin Rama said in an interview.

“The acceleration of growth that we see in the region is not necessarily that all countries in the region are doing much better, it’s a mixed picture, but given the size of India, India’s bouncing back is driving the growth,” he added. But job creation is a concern. Despite growth, India was not creating enough jobs.
The report said: “India must create 8.1 million jobs a year to maintain its employment rate, which has been declining largely due to women leaving the job market.”
The decline on account of women dropping out is “happening in areas that are borderline between urban and rural (and) as farming jobs disappear and other types of jobs do not appear,” said Rama, referring to existing research.
He added: “In the traditional village societies, working on the farm was a bit like working at home but now you are becoming urban and you have to go somewhere” else such as construction and other small service sector work.

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