GST will have a positive impact on world bank development. Goods and Services Tax will have a hugely positive impact on the Indian economy and the slowdown observed in the first quarter of this fiscal is temporary, World Bank President Jim Yong Kim. The recent slowdown is an aberration that will get corrected in the next few months and the GDP growth will stabilize during the year.
The Bank’s President said they have been closely watching PM Narendra Modi’s efforts to improve the business environment and they think it’ll pay off. The general consensus about the economy’s outlook was positive at India Economic Summit, organized by World Economic Forum and Confederation of Indian Industry, with industry players believing that demand would pick up in the next few quarters, beginning the festive season.
Speaking of India’s growth slowdown in the first quarter, World Bank President Kim insisted that the deceleration was only temporary as GDP growth would stabilize in the coming months. Concerned over a rise in protectionism, policy uncertainty, or a possible financial market turbulence, Kim said the global economy has started accelerating and trade is picking up after years of disappointing growth, but investment remains weak.