BANGALORE: The World Bank recently lowered India’s growth projection to 5.5 percent from the previous projection of 5.7 percent for 2014-15 and cautioned that the looming crisis happening in Iraq, which has the potential to blow up the oil bill, can hamper India’s economic recovery, report Hindustan Times.
Onno Ruhl, country director India, World Bank, after releasing the report on Global Economic Prospects 2014 said, “Iraq is a big concern and extremely unpredictable… India, being an energy-deficient country, could be faced with increased fiscal pressures on the fuel side,” reports HT.
Ahead of the Modi-led government’s first budget in July, the World Bank also suggested implementation of reforms like rolling out of Goods and Services Tax, enhancing business environment by eradicating bottlenecks and managing subsidies to put the country back on the high-growth path.
As per the GEP 2014 report, India’s growth rate is set to accelerate to 6.3 percent in 2015-16 and 6.6 percent in 2016-17.
“With rising global demand, we expect that a rebound in domestic investments and a pick-up in manufacturing activities will help India move from two years of sub-5% growth to over 6% in the next year,” Ruhl added.
However, with the impact of inflation and the El Nino (a weather phenomenon in the Pacific), increase in non-performing assets of the banking sector and weak investments continue to pose challenges for India.
Also Read:
Price Rise of Food Commodities; Inflation hikes to 6.01 per cent in May
Most Expensive Houses In The World
Magazine : 
.jpg "Gurbinder Singh Punn: Enabling Leaders To Achieve Unencumbered Success Through Effective Coaching")
.jpg "Navigating Success Presenting Innovative Insights")
