The World Bank is optimistic about India: According to IDEX Online, it believes “the demonetization of high value currency notes last year and the upcoming introduction of the goods and services tax (GST)” will lead to a 7.2% growth of the Indian economy in the year 2017-18. This is the highest rate predicted for any country in the world.
In its biannual report, The World Bank said: “In the long-term, demonetization has the potential to accelerate the formalization of the economy… the implementation of the GST is a key complementary reform that will support formalization, as firms have a strong incentive to register with GST to obtain input tax credits”.
Junaid Ahmad, World Bank country director in India, added: “India remains the fastest growing economy in the world and it will get a big boost from its approach to GST which will reduce the cost of doing business for firms”.
