The World Bank is an international financial institution which gives loans to the countries for capital projects. The World Bank also releases statements predicting the growth rate and opportunities of the countries across the world. These reports are predictions based on the way the economy of the said country is functioning at present. Economic Policies and the political-economic framework of the country are also taken into account by the World Bank before predicting the growth rate. The most recent prediction for India surely looks promising.
The World Bank on Tuesday mentioned the Indian economy in its semi-annual South Asia Economic Focus. The World Bank said, “Growth is expected to accelerate from 6.7 in 2017 to 7.3 percent in 2018 and to subsequently stabilise supported by a sustained recovery in private investment and private consumption”.
It also advised India to accelerate investments and exports to benefit fully from the global growth recovery. The forecast by the World Bank also mentioned that the country’s economy had recovered from the initial shocks of Demonetisation and the Goods and Services Tax (GST). Demonetisation and GST implementation were two minor shocks for the growth rate in India. The economy of India has managed to recover in a little more than a year following the implementation of these two necessary steps.
The World Bank’s predictions were preceded by an equally favouring remark for the Indian economy by the Blackstone Group LP. Blackstone Group LP is the world’s largest private equity firm which invests in countries around the globe. Blackstone is looking forward to invest 60% of its maiden $4 billion Asia-focused fund in India. This investment will be to the tune of approximately $2.4 billion, carried out over the period of next 5 years.
Blackstone’s global private equity fund will contribute about 40% of the deal value for every transaction done while the new Asia fund, BCP Asia, will chip in the remaining 60%. The rising investment opportunities in India have already attracted rival private equity funds of the Blackstone group. With this move, the buyout firm will be able to capitalize on opportunities in India swiftly.
The shift of focus of the private equity firms from China to India is due to the scale of opportunities and ease of exits available in India. The structural reforms, growth momentum and currency stability in the country have attracted the attention of firms such as Blackstone amongst others.
The “growth rate” prediction is taken as a benchmark by investors from around the globe. With predictions of an improved growth rate by the World Bank, firms like Blackstone shifting their focus towards India on and increased stability in the economy there will be bigger and better prospects for the Indian Economy in the upcoming days.
An era of growth and development is likely to follow in the days ahead. The “Acche Din” are here, as promised. The prospects look good and we need to move ahead with full force to make India better. The points made by the Central leadership in the past before the GST and Demonetisation era, have now been proven by the World Bank’s report and the faith shown by the Blackstone group’s decision. We just need to focus and work hard to make the predicted growth rate a reality and “Acche Din” will follow.
