On Wednesday, the World Bank released its India Development Update in which it said: "The GDP growth is projected to reach 6.7 per cent in 2017-18 and accelerate to 7.3 per cent and 7.5 per cent in 2018-19 and 2019-20 respectively".
The global economic growth is set to remain above 3 per cent for three consecutive years until 2019, a performance not achieved since the mid 2000s, it said.
The bank has also indicated that the GST is one of the most complex tax systems and has the second highest tax rate in the world among a sample of 115 countries which have a similar indirect tax system.
According to the Central Statistics Office (CSO), the economy is expected to grow at 6.6 per cent in the current fiscal ending 31 March.
The World Bank report further said that accelerating the growth rate will also require continued integration into global economy.
"In some of these episodes, high growth was due to a low base impact of slow growth in the previous year followed by an unusually good agricultural output (1976, 1989); in others, it was an outcome of unsustainable fiscal or other macroeconomic policy (such as 2010-11)", the report said.
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Highlighting the factors that could propel the growth, the agency in its report noted that 'the influence of one-off policy-related factor which was dragging growth has now waned.' It also observed that the money supply - which choked economic activities in formal and informal sectors after demonetisation - recovered to its pre-demonetisation level in mid-2017 and is now increasing steadily.
In India's GST system, there are five tax slabs of 0, 5%, 12%, 18%, and 28%. To sustain its growth path, India will need to keep a close eye on several factors to make the country more resilient to shocks: the changing landscape of open trade, reforms in the banking sector, strengthening financial institutions, and regulatory supervision of the financial sector. It appreciated the impact of GST on formalization of the economy and for making economic growth sustainable.
"This will require continued impetus for structural reforms", Ms. Gupta added.
"Blockchain's application for identity management and know your customer (KYC) looks quite promising", stated the study titled, 'Role of trade finance for inclusive growth, ' jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and global professional services firm Deloitte.
The report has also noted that while oil prices pose less of a risk for the economy, the expected normalisation of the monetary policy by the United States and other advanced economies are likely to tighten financing conditions. Among the many preconditions for India to reverse this pattern are an infrastructural boost to bring it on par with the world's current manufacturing hubs. Finally, building on recent improvements to its doing business ranking, India can benefit from further strengthening its competitive business environment.