World Bank's Global Economic Prospects Report, Indian economy will grow at 7.5% for 2019-20

hello my dear friends and welcome to study IQ I am joy C joy and today in this lecture we will be discussing about the World Bank projections on India's economic growth so recently the World Bank has given its projections about the economic growth of India in the coming financial year 2019 20 that is the ongoing financial year so the World Bank has also commented that India will retain its position as the fastest growing economy so let us discuss this in detail in this lecture this is a very important topic for your UPSC examination both from your preliminary as well as your manes examination point of view from April M's exam point of view such type of statements are very important especially when it is given by international organizations like the World Bank IMF other important international groupings etc and throw your main examination such type of projections or any reports published by international organisations becomes very important you can add value to your answer by quoting these type of examples no since this projection has been given by the World Bank this is important for other examinations like RBI IBPS banking examination Sebby and Abad another competitive examination so we will be discussing about this in detail in this lecture but before we begin this is our channel study IQ and we are providing pen drive courses for various competitive examinations including SOC and Bank osis upse optionals sse je courses teaching examination rail examination defence examination our be a great beef nabad grade-a UGC net UPSC civil service examination class exams for various state pcs and also for various professional courses you can visit our website for more details or you can call to any of these numbers for more information so let us start let us first understand what is the current affair so as I said in the beginning the World Bank has projected that the economic growth of India in the financial year 2009 20 is expected to be 7.5 percentage it also commented that India will retain its fastest growing economy title so with the 7.5 percentage of growth rate India will retain that means already India is the fastest growing economy now India is going to retain this title of fastest growing economy now what is the difference between economic growth and economic development now the World Bank projections are regarding economic growth so economic growth is a quantitative term whereas economic development is qualitative so economic growth can be measured in terms of GDP because this is quantitative so any improvement or increase in the GDP of the country will result in better economic growth so economic growth is quantitative which can be measured in terms of GDP or gross domestic product so what does GDP GDP of an economy the sum total or the monetary value of all the goods and services produced in an economy within our financial year so this is the monetary value of all the final goods and services produced in an economy in a financial year now this amounts to economic growth now economic development it is a qualitative term now qualitative term means that along with quantity that is along with GDP what is important here economic growth that is in terms of GDP plus development that is social indicators for example education health environment all this becomes important and only when there is an improvement in social indicators like health education environment etc along with religion town it has qualitative growth which is referred as economic development now let me tell you the reason why I am giving more focus on such type of terms and concepts is because if you look at the upse preliminary examination paper this year you will understand that it was more of a conceptual paper so the number of facts asked in this year's paper was very less so now the comparative examinations especially the UPSC they are aiming more at the conceptual clarity of the candidate so even if you mug up all the facts were able to clear this exam you should have a thorough understanding of the concepts so that is what is tested in the UPS examinations so it is very important that you be aware of the concepts now this is the current affair let us move on let us understand what are the engines of economic growth as indicated by the World Bank so while Bank says that in the upcoming next three years the engines of economic growth for India would be investment and private consumption now if we look at the structure of Indian economy we have a huge population so this population will spend on consumption expenditure so private consumption becomes a key engine of economic growth in India this is because the private consumption can boost the demand in the economy and by improving the demand in the economy the supply will also improve in order to meet the demand so when demand increases the supply increases so when supply increases it means that the output of the economy increases and we have already discussed that GDP is the indicator of economic growth which is measured in terms of output from an economy so this will directly contribute towards increase in the GDP and thereby economic growth now coming to investments investment will help in improving or economic growth because this will either productive capacity of the economy so by investing in technology by englishmen infrastructure the output or the productive capacity of an economy increases thereby the GDP also improves so these are the key engines of economic growth for India as discussed by the World Bank now moving on to global economic prospects so this is a report released by the World Bank and according to the global economic prospects in 2018 19 the growth rate that is the economic growth rate expected in India is 7.2 percentage and World Bank says is that there had been a slowdown in government consumption but this slowed down government consumption was offset by investment and public infrastructure spending so it is expected that the growth rate for 2018 19 financed layer could be 7.2 percentage now let us come to China according to World Bank in 2018 the growth rate of China would be 6.6 percentage so the growth rate is much lower than that of India in India it is expected to be 7.2 percentage so in China 2018 it is expected to be 6.6 and according to World Bank a report the growth rate in China is expected to even further slow down in the upcoming years so in 2019 it is expected to come down to 6.2 percentage in 2020 it is expected to come down to 6.1 percentage in 2021 it is expected to be 6 percentage so while Bank forecast a growth slowdown in China whereas in India it is expected that the growth will continue and India will retain the position of being the fastest growing economy or fastest growing emerging economy now we have seen in the previous slide that according to World Bank projections for the upcoming 3 years that is 2019 221 India is going to retain its growth rate of 7.5% is now in 2021 it is expected that China's growth rate at 6 percentage so it means that in 2021 India would have a growth rate 1.5 percentage higher than that of China's economic growth rate so India will retain its position of being the fastest growing emerging economy in the world now let us come to the factors so these are the factors that will help India to retain its position as the fastest growing emerging economy and to keep up the growth momentum the first one is private consumption and investments so private consumption and investment as we have already discussed this will help in enabling or improving the demand and thereby the supply will increase now what has to be done in order to better a cube private consumption and investment and for that there should be a robust credit growth in the economy so credit growth here means that the banks and the financials must provide formal sources of credit to private sector so with credit growth and also accommodative monetary policy monetary policy is taken by the RBI the monetary policy committee takes up the monetary policy decisions so this is largely related to the interest rates so monetary policy means increase or decrease in the interest rates by considering the rate of inflation in the economy so the monetary policy should be enabling it means that it should provide for an interest rate which will help in enhancing the credit growth in the economy so credit growth plus monetary policy interventions or accommodative monetary policy will help boosting the private consumption and private investment so this will largely help in improving the demander by increasing the supply in the economy now second factor is the inflation now according to World Bank the inflation rate in Indian economy is even below the target so target here means that inflation targeting the government that is a central government along with RBA has targeted for a particular range of inflation within which the inflation rates should be contained so we were able to achieve the targets and we were even able to go below the target so considering this there can be a scope for improving the credit growth in the economy and RBI is also going to take enabling monetary policy which will bring down the interest rates because the inflation rates are low in the economy so this will also help in improving the economic growth in the economy now next one is fiscal consolidation this is because of the political stability at the central level now we know that after the new government formed the previous government or the previous political party itself is continuing in the power so there is lesser chances that policy decisions can extremely change and also it is expected that the policies of the previous government will continue so this will give a political stability economy so this also will help in improving the economic growth by achieving of fiscal consolidation now if we come to household consumption which is a key factor in determining the demand in the economy and thereby growth no consumption in the credit growth in the rural areas areas agricultural price household consumption if the farmers get prices for the produce or competitive prices produce it is man and household consumption in the rural areas will in so these are the factors that can contribute towards economic growth in the Indian economy now World Bank also says that India Tector three of these sectors will contribute towards economic growth so it means that the growth will not be concentrated in one artist but all the sectors would be contributing even that primary sector contribute towards economic growth the World Bank so these are the projections of World Bank regarding India's economic growth in the upcoming years and in the present financial year you can find the PDF of the lecture on our website for any of your queries and suggestions thank you

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  2. Don't know who to trust because former chief economic advisor Arvind Subramanian is telling that Indian GDP is over estimated actual GDP is 4.5% not 7%

  3. China America trade war is a good thing for India.. India can pull All American investment into India.India have all the infrastructure and skill workers .If India don't use the opportunity then it will too late for you India..This time you kill the Chinese economy…

  4. Even if we grow, we will be always poor. Don't know. From childhood, I am hearing Indian economy is going up. We are pretty same. Poor poor poor. If you don't agree see other country. Otherwise why do you want to leave your country? Americans never leave their country😬

  5. Aap agar Middle Income Trap k barein may bhi thora sa discuss kar dete toh pura clear ho jata..

    Q ki consumption rates pehle sey ghat rahe hain aur isliye investment shayad kaam ho jaye, Inflation target bhi hum achieve na kar paye,

    Economic advisory Shree Rathin Roy ney Govt ko warn kiya tha uske saath World bank ka ye data match nehi karta..

  6. Presentation change karo…. Marker se likna band karo…. Pehle se slide banake rkho mahipal sir k jaise

  7. madam ji
    kya aap WB ki rehne wali ho ???
    apke naam se lga
    aur jis tarha se apne apna naam spell kiya usse lga

  8. prashant sir is making videos saying India is no longer worlds fastest growing economy and u saying India still is😂

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