The service sector will remain the driver of India’s economic growth

India's service sector

Due to initial GST implementation and demonetization, India’s GDP growth saw a temporary dip in the last two quarters of 2016-17. The activity of India’s GDP growth has begun to stabilize since August 2017 which continues in the first quarter of 2017-18. The agriculture sector and the manufacturing sector are also expected to accelerate its results in 2018-19 and 2019-20. The policy reforms like energy subsidy reforms and stable balance of payment situation have helped India in improving the ease of doing business, ease inflows of foreign direct investment, and overall business environment.

World Bank Country Director, Junaid Ahmad, expressed when he was in India: “India’s long-term growth has become more steady, stable, diversified and resilient. In the long-run, for higher growth to be sustainable and inclusive, India needs to use land and water, which are increasingly becoming scarce resources, more productively, make growth more inclusive, and strengthen its public sector to meet the challenges of a fast-growing, globalizing and increasingly middle-class economy.”

India's GDP

The Indian economy is credible

The Indian economy, which is defined as a credible economy over the long run, is expected to grow at 7.5 percent by 2019-20. It is now driven by investment, manufacturing, private consumption, and exports. It is expected that the current fiscal will be ending with 6.7 percent. “India’s GDP growth saw a temporary dip in the last two quarters of 2016-17 and the first quarter of 2017-18 due to demonetization and disruptions surrounding the initial implementation of Goods and Services Tax. The GDP growth is projected to reach 7.3 percent in 2018-19 and 7.5 percent in 2019-20,” the World Bank stated.

India's service sector

International Solar Alliance to help India in dealing with the climate change

The unique geographical position is helping India in leading the solar energy making countries across Asia. With the aim to reduce cost and stimulate innovation, India has recently launched International Solar Alliance (ISA) in New Delhi. It will drive India’s growth story by ensuring energy security. The deal made on March 1st, 2018 will also help us in dealing with the obstacles of climate change. More than 121 Suryaputra (Sons of the Sun) countries, which lie between the Tropic of Cancer and the Tropic of Capricorn, have joined in the initiative launched by Prime Minister Narendra Modi at the India Africa Summit.

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