New Delhi, March 14 - The Indian economy is set to revert to its trend growth rate of 7.5% 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 March 14.
It said that India's GDP growth is projected to reach 6.7% in 2017-18 and accelerate to 7.3% and 7.5% 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% 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.