New Delhi: Days after it gave India a 30-place jump in its ease of doing business ranking, the World Bank on Saturday said the Goods and Services Tax (GST) and reforms push by the government will catapult the country to high middle income economy in 30 years.
“It is particularly rare when we talk about size of India. I understand that in a cricket-loving nation hitting a century is a very important milestone,” World Bank Chief Executive Officer (CEO) Kristalina Georgieva said.
Last week, India moved for the first time into the top 100 of World Banks Ease of Doing Business global rankings due to sustained business reforms over the past several years.
Last year the report had ranked India at 130. Speaking at India’s Business Reform even organised by ministry of commerce and industry, she said, high level ownership and championship of reforms is critical for success.
“We have learnt that in reforms what pays off is persistence.. what we are recognising in India is that this success today is to be turned into more energy in reforms for the future,” she said.
Praising the efforts of Prime Minister Narendra Modi to carry forward reforms, including unification of indirect taxes, the World Bank CEO said the GST reform creates an incredible opportunity for India to grow through unified internal market.
There is visible impact of reforms on foreign investment, she said, adding that foreign direct investment has doubled to $60 billion from $36 billion in 2013-14.
Besides, she said, investment in infrastructure building, investment in its people and strengthening of cooperative and competitive federalism are foundation for more progress in the future.
“We know that there is a very strong condition that extreme poverty would be history in India. The target date that was set 2026, I understand that the Prime Minister intends to shorten to 2022. Given the track record so far, I have no doubt that would be possible,” the CEO said.
