Lauding the measures taken by the Narendra Modi government, World Bank President Jim Yong Kim at the Vibrant Gujarat Global Summit 2015 maintained that measure such as Constitution Amendment bill for a Goods & Services Tax (GST) would provide an opportunity to make businesses easier in India.
Kim welcomed the step taken by Modi government to gradually eliminate diesel subsidies stating that 'for years, it has been a drag on India's growth and harmed the environment. "If made permanent, this decision will improve the country’s fiscal position, reducing the cost of borrowing and public investments," he told the gathering of the business and international political leaders at the Mahatma Mandir here.
Kim also emphasised on India's role in World Bank's aim to end extreme poverty by 2030 and to boost shared prosperity. "We will not be able to turn this vision into reality unless India, home to more than 1.25 billion people, follows a path of rapid growth in which all Indians benefit.
"Hundreds of millions of Indians live on less than a $1.25 per day, and the poorest 40 per cent of the population here constitutes 500 million people – on their own, they would be the third largest country in the world," he said adding that hence it was necessary to be closely tied to the country’s economic growth and development. "For this reason, we’are committed to catalyzing a vibrant India, which, with strong trade ties to its neighbours, is able to realize its full potential," he said.
At the gathering of global investors, entrepreneurs and CEOs Kim expressed optimism about the country's growth for this fiscal. "We project that India will be a bright spot in an otherwise mediocre global economic outlook. According to our projections, its economy is expected to grow 6.4 per cent this year and even faster in 2016."
He attributed the optimism for the sustained growth to the Prime Minister Modi and his government, which is 'quickly putting in place the building blocks for even more rapid growth, streamlining the national regulatory structure, using public funds more efficiently, and promoting social inclusion.'
Kim also appreciated India's measures to use solar power to produce 100,000 megawatt (or over 12 per cent of the total demand) of electricity by 2022.