Indian economy to grow at 6.9% this year: World Bank
13 Jun 2012
The Indian economy will grow by 6.9 per cent in this financial year (ending in March next year) despite problems like policy uncertainties, high fiscal deficit and inflation, the World Bank projected on Tuesday.
"India will see growth (measured at factor cost) increasing to 6.9 per cent, 7.2 per cent and 7.4 per cent in fiscal years 2012-13, 2013-14 and 2014-15 respectively," the World Bank said in the report titled Global Economic Prospects, Uncertainties and Vulnerabilities.
The report has cautioned that developing nations in general will have to face tougher times, and could become more vulnerable than during the global recession in 2008.
Referring to developments in 2011, the multi-lateral lending agency said that growth in India was particularly weak due to monetary policy, stalled reforms and electricity shortages. These factors, along with fiscal and inflation concerns, cut into investment activity, it added.
India's economic growth rate in 2011-12 slipped to a nine-year low of 6.5 per cent. The economy had expanded by 8.4 per cent in the preceding two years.
"Growth in South Asia slowed to 7.1 per cent in 2011 from 8.6 per cent in 2010 as headwinds from the Euro Area crisis caused a steep deceleration in exports and a reversal of portfolio inflows," the report said.