World Bank On Indian Economy – Free PDF Download

• Malpass, who is on a three-day visit to India, met-Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and members of the Niti Aayog And discussed financial sector reforms with them as well.
• We (Malpass and Modi) discussed the ways in which the financial sector can move forward.
• The Indian financial sector has made quite a bit of progress.
• It has made progress in terms of monitoring of assets, the bankruptcy process and deepening of the banking system.

REFORMS NEEDED

• To aide growth, India must undertake financial reforms in three key areas – Sound regulations for non-banking financial companies (NBFCs),
• Allow private sector banks in a big way in the banking sector, Deepen capital market.
• The NBFCs have caused credit squeeze in the financial sector.
• Default in IL&FS bonds sparked a liquidity squeeze that spread to other NBFCs.

EASE OF DOING BUSINESS

• Reforms in land management and enforcing contracts could be the next big measures through which India can better its Ease of Doing Business ranking.
• The world bank placed India at 163 and 154 positions, respectively, on enforcing contracts and registering property.

• India needs to provide adequate resources to commercial courts at the district level for judgments to flow faster.
• Digitisation of the land data and making the data readily available throughout India would facilitate the buying and selling of land.

INDIA’S GROWTH RATE

• Recently the World Bank sharply cut India’s growth forecast for the current fiscal to 6 per cent, down from the 7.5 per cent forecast it made in April.

WHETHER DEMONETISATION HAS CAUSED LOWER GROWTH?

• Economists made lots of forecasts…
• They were saying India has been affected by the global environment and has slowed from the higher past growth rates and it is very much related to the slowdown in global growth.

FUNDING FROM WORLD BANK

• World Bank currently has 97 projects with over $24 billion committed in the country.
• Malpass said existing programs will continue.
• He added the body’s funding for India may grow by an estimated $5-6 billion annually.

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