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India’s growth can be inclusive and sustainable: World Bank

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By NewsGram Staff Writer

World Bank sees a great promise in NDA government’s three pronged development agenda. It feels that Prime Minister Narendra Modi led government’s strategy of promoting fast and durable economic growth; involving states as active development partners; and improving the delivery of social benefits and extending social safety to the elderly and the underprivileged, will accelerate inclusive and sustainable growth but reforms have to be stepped up.

World Bank report, India Development Update, April 2015, said that the Indian government has already started implementing reforms to improve the business environment; liberalize FDI; boost both public and private investment in infrastructure; quickly resolve corporate disputes; simplify taxation, and lower corporate taxes. The states are going to receive more resources and power while the implementation of GST will improve tax to GDP ratio.

The report said that the reforms of the government, coupled with favorable external environment like reduced oil prices, have led to growth acceleration, inflation decline and narrowing of current account deficit. However, it also cautioned about the negative impact that oil price rise or tightening of US monetary policy can have on the country.

The bank also said that new investments to the country are still dented due to the debt overhang in the corporate balance sheets, which has extended to the Public Sector Banks (PSB). Promotion of private investment to bridge the infrastructural deficit was also required.

The report offered some solutions too, like the need to increase manufacturing competitiveness significantly to carve a space among the world’s large exporters. It also talked of the need for infrastructural boost to bring India at par with the world’s manufacturing hubs, in addition to the competitive supply of labor, land, finance, and skills, as well as a friendly business environment.

The World Bank report also emphasized on the role of MGNREGS in the process of development in India.

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World Bank to Help Sri-Lankan Farmers Improve Productivity and Tackle Climate Change

The project will ensure that all farmers obtain adequate access to training and research

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world bank, sri lanka
The project will ensure that all farmers obtain adequate access to training and research. Wikimedia

The World Bank on Monday approved a $125 million loan for Sri Lanka to help small farmers improve productivity and tackle climate change.

The programme will benefit more than 470,000 small farmers in six provinces in the dry zone of the country, selected for being most exposed to climate impacts, the World Bank said in a statement cited by Xinhua news agency.

Sri Lanka is particularly vulnerable to climate-related natural disasters such as floods and droughts with hundreds of people killed in recent years, the report said.

farmers, sri lanka, world bank
Sri Lanka is particularly vulnerable to climate-related natural disasters such as floods and droughts with hundreds of people killed in recent years, the report said. Pixabay

“Innovation, including the introduction of improved crop varieties, cropping patterns, water resources management, among others, can help farmers adapt to changing climate and improve their incomes and livelihoods,” said World Bank Country Director for Maldives, Nepal and Sri Lanka Idah Z. Pswarayi-Riddihough.

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The project will ensure that all farmers obtain adequate access to training and research.

Sri Lanka’s agriculture is one of the worst-affected sectors by climate change. Agriculture contributes about 7.7 per cent to the country’s economy and employs 27 per cent of the population. (IANS)