While the global growth rate is expected to go down to 3% in 2019 and 2.9% in 2020, India is projected to regain its position as the world's fastest growing major economy advancing 7.3% this fiscal year and 7.5% in the next two years, according to the recent forecasts from the World Bank. India's GDP growth bottomed out in the middle of 2017 after slowing for five consecutive quarters, and has since improved significantly, with momentum carrying over into 2018 on the back of a recovery in investment, as per the report. The growth projections reflect robust private consumption and strengthening investment. More importantly, manufacturing output and industrial production have become robust and stable. The question is how broad is this growth, and how long will it sustain?
India is striving to improve its manufacturing competitiveness at a time when manufacturing powerhouse China is shifting toward consumption-led growth. China now faces the risk of overcapacity in many segments.
