Question:

The World Bank had cut India’s GDP growth for 2016–2017 to:

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Economic growth forecasts can change due to policy decisions, global trends, and unexpected events — always check the latest updates from credible sources like the World Bank, IMF, and RBI.
Updated On: Aug 14, 2025
  • 7.6%
  • 7.0%
  • 8.0%
  • 8.6%
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The Correct Option is B

Solution and Explanation

In early 2017, the World Bank revised India’s GDP growth forecast for the fiscal year 2016–2017 down to 7.0%.
This revision was attributed mainly to the short-term economic slowdown caused by the demonetisation of high-value currency notes in November 2016.
Option (a) “7.6%” was an earlier projection made before the demonetisation impact was factored in.
Option (c) “8.0%” and option (d) “8.6%” are unrealistically high for that fiscal year and do not match official forecasts.
Even with the revision, India remained one of the fastest-growing major economies in the world, ahead of China’s projected growth rate for the same period.
The World Bank also noted that structural reforms and digital payment adoption could help India’s economy recover quickly in subsequent years.
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