India must boost private investment, rural demand: World Bank

Earlier this year, India's Prime Minister Narendra Modi launched multiple schemes for farmers, targeting rural development.

The various schemed looked to improve irrigation facilities and thereby increse productivity and improve organic farming and their exports.

It also introduced multiple fertilizer plants and provided higher credit availability to farmers.

These measures were taken aware through a nation-wide campaign launched in 2016.

India will require a boost to its private investments and rural demand, the World Bank said, to help sustain its growth rate of 7.6 percent.

It said that the country had faced an accelerated growth rate, albeit seeing stagnant growth engines.

It cited growth across agriculture, rural demand, trade and private investments as the need of the hour, while ensuring public investments don't slide.

The World Bank's report on India reflects concerns on the increasing level of non-performing assets, and lowered credit growth, especially among the public sector banks.

Amidst regulatory and policy challenges, the report cited the banking system's lowered ability to support private investments as an impediment in the long term.

It suggested a structural transformation of the sector towards one that is more competitive.

The Bank, which published this study across several media platforms, said that India's agricultural sector, rural household consumption, private investments and exports have not performed to their potential.

The Bank sees economic growth at 7.6 percent in 2016-17, and increasing gradually to 7.8 percent by 2018-19.

The report also noted an improving factor that health and education expenditure increased across every state last year.