Amid gloomy global economic conditions, Indian economy has once again been described as the bright spot and this time it is hailed by no one other than the World Bank (WB) President Jim Yong Kim, who also praised Indian PM Modi's style of governance, terming it ‘a lesson in leadership’ for him. “There is a resilience to this economy, there is a confidence in what is happening with this government and that's leading to all the foreign direct investment growth we see“, said the WB President.
A new World Bank report also released recently suggests that the emerging market economies, which led the global recovery from the 2007-08 financial crisis are slowing down, with only one exception, India. It called India-led South Asia a “bright spot” in an otherwise gloomy outlook for emerging markets, using a phrase that has come to be used regularly in the recent months for India – the bright spot.
India is projected to grow at 7.8% in 2016 despite the global headwinds, the World Bank said, as against Chine, which will grow at 2.9% in 2016.
There is Lot of exciting stuff happening in India - structural reforms are ongoing. The Indian government is engaged in bringing out a new bankruptcy code. There is Goods and Services Tax on the anvil. Moreover, technological developments are happening and making for a more, reasonable life for a lot of people. Plus there is a significant amount of flair and creativity in the Indian economy. Low gas prices will help, but, the report says, low inflation and higher government wages will fuel demand and urban spending.