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World Bank wants India to remove growth barriers

Updated: Jun 13, 2013 05:09:25pm
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New Delhi, Jun 13 (KNN)  Pace of recovery in the Indian economy will depend on reducing structural constraints and consolidation of the government finances, the world Bank said in a latest report.

India’s economic growth slowed down to 5 per cent, the lowest in the decade.

“Continued progress in fiscal consolidation and in reducing structural constraints will determine the pace of recovery. Domestic risks dominate, including a possible derailing of reforms, and weaker than expected monsoon rains,” said World Bank.

In South Asia, Gross Domestic Product slipped to 4.8 per cent in 2012, mainly reflecting a continued deceleration in India, slower growth in Sri Lanka and Bangladesh, and sluggish growth in Pakistan and Nepal.

However, regional GDP growth is projected to pick upto 5.2 per cent in 2013, before accelerating to 6 per cent and 6.4 per cent in 2014 and 2015 in line with strengthening external demand, normal monsoons and gradual pickup in investment spending. 

With regard to India, growth is projected to rise to 5.7 per cent in the 2013 fiscal year, and firm to 6.5 per cent and 6.7 per cent in FY2014 and FY 2015.

Growth in the developing world will remain solid, albeit slower than the frenetic growth rates seen during the pre-crisis boom period, as developing countries grapple with home-grown challenges brought on by capacity constraints in many middle income countries, said World Bank’s latest global economic prospects, issued today. (KNN)

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