In its first projection on India post-demonetisation, the World Bank has lowered the country’s GDP growth estimate for this fiscal to 7 percent, from its earlier estimate of 7.6 per cent made in June last year. But, now World Bank CEO Kristalina Georgieva has lauded PM Narendra Modi’s demonetisation move.

“PM Modi’s decision to ban high-value banknotes as part of efforts to stamp out corruption will have a profound and positive impact on India’s economy,” she said. “What India has done will be studied (by other countries). There hasn’t been such demonetisation in a country so big,” she added.

“India is our biggest middle-income client. Its economic growth influences global growth. Its achievements in health and education contribute to the world achieving the Sustainable Development Goals. I am keen to learn more as India is a laboratory for the world to learn about what works in development and to find new ways to collaborate.” Georgieva said.

World Bank CEO Kristalina Georgieva was in India on her first official visit to the country. She traveled in a local train and also inspected the operations of the suburban rail system which has been supported by the international financial institution. She had held discussions with the Finance Minister Arun Jaitley, Maharashtra Chief Minister Devendra Fadnavis, RBI Governor Urjit Patel and other key policy-makers.

By Premji