World Bank steps up pressure, tells India to quickly "reform" economy, lest 7.7% growth not achieveable in 2017

By A Representative
Amidst continued apprehensions that Prime Minister Narendra Modi does not seem interested in his announced neo-liberal "economic reforms" to further open up the Indian economy to world investors, the World Bank has stepped up its pressure saying India can achieve 7.7 per cent rate of growth in 2017 only if it early quickly moves in that direction; lest it would miss the bus.
The World Bank, even as releasing its report titled, "South Asia Economic Focus Spring 2016: Fading Tailwinds", has stated, "Economic growth in India expected to be 7.7 percent in 2017 compared to 7.5 percent in 2015", but warns Indian policy makers that "delays in the adoption and implementation of key reforms could affect investor sentiment."
The remark comes amidst the Government of India failing to bring about a consensus on dropping what the World Bank believes was a "retrograde" land acquisition Act, 2013. Also, there are few efforts, the World Bank point of view, to try to drop subsidies going into the agriculture sector.
It said, "Favorable overall trends mask important underlying divergences: between urban and agricultural households; between domestic and external demand; and between public and private capital expenditure, which should be addressed."
Pointing out that, thanks to India, South Asia "remains world's fastest growing region, but should be vigilant to fading tailwinds, it said the country's economy can look up if it is "supported by a rebound in agriculture and stimulus from civil service pay reforms", the World Bank underlines, the region "should worry about global turbulent."
The World Bank said, "Led by robust growth in India, South Asia shows resilience in the face of turbulent international markets and remains the fastest-growing region in the world, with economic growth forecasted to gradually accelerate from 7.1 percent in 2016 to 7.3 percent in 2017."
In a twice-a-year report, "South Asia Economic Focus", the World Bank said, "The region’s economic performance prospects remain strong due to its limited exposure to global turbulence, coupled with increasing investment activity."
"However", it pointed out, "There are also signs of fading tailwinds. Capital flows to the region have declined and remittances from oil exporting countries have started to weaken."
It further said, "Fuel and food prices remain low but are unlikely to keep falling. As a result overall output growth is slower than previously anticipated and inflation has recently been creeping up."
"Given its weight in the region, India sets the pace for South Asia as a whole", the World Bank said.
It added, "Economic activity is expected to accelerate from 7.5 percent in FY2016 to 7.7 percent in FY2017 based on the expectation of strong private investment, a push in infrastructure spending, an improved investment climate, and deleveraged corporate and financial balance sheets."
Quoting Annette Dixon, World Bank South Asia Vice President, the report said, “However, fiscal and financial vulnerabilities remain and countries should strive to address them through generating revenue and creating more fiscal space.”
The report’s analysis of fiscal policy across the region suggests that governments need to find a balanced path towards fiscal consolidation.
“Fiscal policy has a wide range of impacts for development. The fiscal deficit affect macroeconomic stability, capital expenditures are needed for growth, and taxes and social spending matter for equity,” the report quotes World Bank South Asia Chief Economist Martin Rama as saying.
"With the currently low oil prices, this is also an opportune time for South Asian policy makers to introduce or expand explicit carbon taxes. This would improve environmental and fiscal sustainability at the same time”, Rama insisted.
"Many South Asian countries show potential for accelerated growth in the short to medium term. However, the tailwinds of high levels of remittances coupled with low oil prices may be slowing down so countries should be well prepared for a more difficult global environment", the report said.

Comments

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

The golden crop: How turmeric is transforming women's lives in tribal India

By Vikas Meshram* When the lush green fields of turmeric sway in the tribal belt of southern Rajasthan, Madhya Pradesh, and Gujarat, it is not merely a spice crop — it is the golden glow of self-reliance. In villages where even basic spices once had to be bought from the market, the very soil today is yielding a prosperity that has transformed the lives of thousands of families. At the heart of this transformation is the initiative of Vaagdhara, which has linked turmeric with livelihoods, nutrition, and village self-governance — gram swaraj.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Beyond the election manifesto: Why climate is now a kitchen table issue

By Vikas Meshram* March has long been a month of gentle transition, the period when winter softly retreats and a mild warmth signals nature’s renewal. Yet, in recent years, this dependable rhythm has been disrupted. This year, since the beginning of March, temperatures across vast swathes of the country have shattered previous records, soaring to between 35 and 40 degrees Celsius in some regions. This is not a mere fluctuation in the weather; it is a serious and alarming indicator of climate change .

As India logs historic emissions drop, expert warns govt against 'policy blunders'

By A Representative In a significant development that underscores the rapid transformation of India's energy landscape, new data reveals the country recorded its largest drop in power sector emissions in 2025. However, a top power sector analyst has urged the Union Government to view this "silver lining" as a stark warning against continuing to invest in new coal, large hydro, and nuclear projects, which he argues could become "redundant" stranded assets.

The selective memory of a violent city: Uttam Nagar and the invisible victims of Delhi

By Sunil Kumar* Hundreds of murders take place in Delhi every year, yet only a few incidents become topics of nationwide discussion. The question is: why does this happen? Today, the incident in Uttam Nagar has become the centre of national debate. A 26-year-old man, Tarun Kumar, was killed following a dispute that reportedly began after a balloon hit a small child. In several colonies of Delhi, slogans such as “Jai Shri Ram” and “Vande Mataram” are being raised while demanding the death penalty for Tarun’s killers. As a result, nearly 50,000 residents of Hastsal JJ Colony are now living in what resembles a state of confinement.

NGO Arunoday’s journey of support and struggle: Standing firm with the distressed

By Bharat Dogra It was a situation of acute distress. Nearly ten thousand people returning to their villages during the COVID-19 pandemic had gathered at the border of Uttar Pradesh and Madhya Pradesh near Kanha. Exhausted after walking long distances with little or no food, they were desperate for relief. Yet entry could not be granted without completing essential records and complying with pandemic rules.

How wars are undermining climate promises even as accelerating global warming

By N.S. Venkataraman* Since 1995, global climate conferences have convened annually, with the 29th Conference of Parties (COP29) held in November 2024. These gatherings attract world leaders and generate extensive media coverage, raising hopes of decisive strategies to address the climate emergency. Yet, despite lofty promises and ambitious targets, the crisis remains unabated.

Jerusalem's Al Aqsa mosque under siege: A test of Muslim solidarity and Palestine’s future

By Syed Ali Mujtaba* In the cacophony of Israel’s and the United States’ attack on Iran, one piece of news has been buried under the debris of war: Israel has closed the Al Aqsa Mosque in Jerusalem to Palestinian worshippers during the holy month of Ramadan. The closure, announced as indefinite, affects the third most revered mosque in the Islamic world.

Search This Blog