India to be the 2nd fastest growing economy at 6%, China to be at the top with 6.1%
Geneva: Indian economy will grow at 6 per cent, falling behind China by just 0.1%, to be the world's second-fastest-growing economy in the current year, UN Trade Agency has projected.
The world growth rate which had plummeted by 3 per cent in 2018 will be at 2.3% this year, according to the Trade and Development Report 2019 released by the UN Conference on Trade and Development (UNCTAD) in Geneva on Wednesday.
Projected at 6.1% growth for 2019, China will reclaim its position as the fastest growing economy.
Next month, International Monetary Fund’s World Economic Outlook will present the report on the growth rates of countries across the world.
According to UNCTAD report, the Indian economy slowdown "continues a decelerating trend which began four years ago".
The report maintained: "Growth projections for India have been marked down, because of a sharp fall to 5.8 per cent in the first quarter of 2019 (relative to the corresponding quarter of the previous year
The report observed "in Asia, the two economies that were among the fastest-growing in the world, China and India, are showing signs of a loss of growth momentum".
The rate of Indian exports has gone down from 6.6% in 2017 to 4.3% in 2018, the report said.
The imports have taken a steep downward plunge, from 11.7% to 3.1% in the same period.
"Together with a projected deceleration in the rate of growth in 2019 for India, where below-target collections from the recently introduced Goods and Services Tax have combined with fiscal consolidation efforts to limit public spending, will further slow growth in the Asian region as a whole," the report said.
Job creations in green and clean energy sectors will be adequate, bringing relief to the growing unemployment in the country, UNCTAD said.
"It is tempting to see them as potential foundations for local industrial development," the report said.
Growth in the green energy sector may be hit by WTO, as the incentives given to the solar equipment producers breach the WTO rules, the report stated.
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