World Bank cuts GDP growth estimate to 7%

The World Bank has cut India's 2016-17 growth estimate to 7% from 7.6% due to the impact of demonetisation. It expects the economy to recover and post a growth of 7.6% in 2017-18 and 7.8% in the following year due to reform measures.

Several economists have cut GDP growth estimates and expect growth to be below 7%. RBI and government estimates show the economy is expected to grow 7.1% from the previous estimate of 7.6%. The Centre's estimate doesn't take into account the impact of demonetisation. Indian growth is estimated to have decelerated to a still robust 7%, with continued tailwinds from low oil prices and solid agricultural output partly offset by challenges associated with the withdrawal of a large volume of currency in circulation and subsequent replacement with new notes.

Global economic growth is forecast to accelerate moderately to 2.7% in 2017 after a post-crisis low last year, the World Bank report said.

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