The Indian economy is set to revert to its trend growth rate of 7.5 per cent by 2019-20 as it bottoms out from the impact of the Goods and Services Tax (GST) and demonetisation, a World Bank report said on Wednesday.
It said that India's GDP growth is projected to reach 6.7 per cent in 2017-18 and accelerate to 7.3 per cent and 7.5 per cent in 2018-19 and 2019-20, respectively.
The India Development Update report, which takes stock of the Indian economy, added that reaching growth rates exceeding 8 per cent will require continued reform aimed at resolving issues related to credit and investment, and enhancing the competitiveness of India's exporting sector.
"Maintaining hard-won macroeconomic stability, providing a definite and durable solution to the cleaning up of banks' balance sheets, realising GST's growth and fiscal dividend, and regaining momentum on the unfinished structural reform agenda will be key for realising these rates of growth," it added.
"Accelerating the growth rate will also require continued integration into the global economy," the report added.
Meanwhile, wholesale price-indexed inflation in India softened during February marginally at 2.48 per cent from 2.84 per cent in the previous month, primarily due to lower fuel and food prices, official data showed on Wednesday. —IANS