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World Bank’s India Development Update – June 2016

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United States based World Bank released India Development Update report to earmark the Indian economy and its prospects for the financial year 2016.

It is twice yearly report reported by World Bank and the report explained that Indian Economy was enhanced to a higher progressive way by demand from urban households and Public investments.

india-development-update

India’s Financial Sector Reviews:

The Sector is performing in the positive end in many attributes which is raised from state controlled system

Banks have capital values in excess of current regulatory requirements and regulations have been strengthened

Flexibility in the credit growth:

  • Issues have been arisen particularly on Non Performing assets and declining credit growth in Public Sector Bank
  • Reforms will be required for the sector such as current structural transformation of the sector require to accelerate the sector to be market oriented & competitive and NPA issues will be addressed proactively

Analyses of the Report:

  • Impacts of the recommendations of the 14th Finance commission of India have been scrutinized
  • Health and education expenditures increased in every state especially in Rajasthan and Kerala
  • Uttar Pradesh spent over one-third of its additional resources on health and education
  • India maintained 7.6 per cent growth rate in 2016-17 and it will be expected that 7.7 per cent in 2017-18 and 7.8 per cent in 2018-19.

Challenges for the Indian Economy

  • Agricultural Growth and Rural Demand
  • Trade and Private Investment

About World Bank

  • International financial institution that provides loans to developing countries for capital programs
  • President: Jim Yong Kim
  • Headquarters: Washington, D.C., United States
  • Founded: 1944