The reforms undertaken by Prime Minister Narendra Modi have been "significant" and the results would be reflected in the mid and long-term growth figures, the World Bank chief Jim Yong Kim said today, days after the global lender forecast that India's GDP may slowdown to 7% in 2017.
"The reform process has been significant. We think that certainly in the medium and long term, the growth will reflect the seriousness of Prime Minister Modi's government in making those reforms," Kim told reporters at the start of the annual meeting of the IMF the World Bank here.
Kim was responding to a question on recent slowdown of the Indian economy. Both the World Bank and the IMF have downgraded India's growth projections.
The World Bank yesterday forecast that India's GDP may slowdown from 8.6% in 2015 to 7% in 2017 because of disruptions by demonetisation and the GST.
The IMF has also lowered India's growth projection to 6.7% in 2017, 0.5 percentage points less than its previous two forecasts and slower than China's 6.8%.
Last week, the World Bank chief had said that the recent slowdown in India's economic growth is short-term and an "aberration" mainly due to the temporary disruptions in preparation for the GST.
"Our team feels that the slowdown has been because of the waiting for the passage of goods and services tax, Kim said in response to a question on India's growth slowdown.